• XTZ’s price has rallied by 61% since the beginning of the year.
• Daily chart readings suggest that a price correction could be imminent.
• Factors such as the Relative Strength Index (RSI), Money Flow Index (MFI), Chaikin Money Flow (CMF), and Aroon indicator all point to a weakening of the bullish momentum.
Tezos (XTZ) has had a stellar start to the year, with its price increasing by 61% since 1 January 2021. The cryptocurrency price tracking platform CoinMarketcap reported that Tezos native coin XTZ ranked as one of the best-performing crypto assets in the last 24 hours. Exchanging hands at $1.17, the altcoin’s price rallied by 4% during that period. In the last week, XTZ’s price also grew by 4%.
Despite the bullish sentiment in the market, an analysis of XTZ’s daily chart readings reveal that a price correction could be imminent. The Relative Strength Index (RSI) and Money Flow Index (MFI) both show that the market may be overbought, indicating a possible drop in price. Furthermore, the Chaikin Money Flow (CMF) has been on a downtrend since 14 January, creating a bearish divergence and suggesting that the rally is not sustainable. Additionally, the Aroon indicator shows that the bullish momentum for XTZ has weakened.
Investors should therefore brace for impact and be prepared for a possible price correction. It is important to keep in mind that XTZ’s market cap in terms of Bitcoin (BTC) is a key factor to consider when assessing the altcoin’s performance. At press time, XTZ’s market cap in BTC was 0.387 BTC.
Overall, XTZ’s price has been steadily increasing, but investors should note that a price correction could take place in the near future. It is crucial to stay informed and to take into account all of the factors that could affect the altcoin’s performance.