BitcoinWorld

Latest News

Tezos [XTZ] Holders can Expect Price Drawbacks this week, here’s why

Tezos’ native token XTZ ranks as one of the best-performing crypto assets in the previous 24 hours, according to statistics from the cryptocurrency price tracking portal CoinMarketCap.

During that time, the altcoin’s price increased by 4%, trading at $1.17. XTZ’s price has likewise increased by 4% in the recent week.

While optimistic optimism persisted in the market at the time of publication, a closer examination of XTZ’s performance on a daily chart suggested that a price drop might occur in the following week.

Since January 1, the price of XTZ has increased by 61% due to broad expansion in the cryptocurrency industry. Investors looking to profit rapidly began purchasing coins, prompting key indicators such as the Relative Strength Index (RSI) and the Money Flow Index (MFI) to hit overbought highs.

However, XTZ’s bullish conviction began to wane on January 14, when its Chaikin Money Flow (CMF) began to fall as its price rose. This resulted in a bearish divergence, which frequently indicates an impending market downturn.

A rising price combined with a falling CMF indicates that the purchasing pressure on the concerned item is not as great as the price increase would suggest.

This discrepancy might indicate that the advance is over and that the price is headed for a pullback. At the time of publication, XTZ’s CMF was 0.10.

Furthermore, a check of the Aroon indicator for XTZ revealed that, while the altcoin’s price is growing, the positive momentum has lessened. At the time of publication, the Aroon Up line (orange) was at 42.86%.

The Aroon Up line is a technical indicator that evaluates the intensity and timing of an asset’s uptrend. A score near 100 suggests a strong uptrend and a recent high, whereas a value close to zero indicates a weak uptrend and a long-ago high. This is an indication of a possible trend reversal.

Finally, a death cross was discovered with the 50-day moving average (blue) below the 200-day moving average (yellow). This crossing is seen as a negative signal and is frequently interpreted as a sign that a decline is about to begin or that the present uptrend is losing momentum.

 

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.