XTZ Price Prediction: Coin May Drop Below $1

XTZ, the native coin of blockchain network Tezos, has emerged as the top-performing cryptocurrency over the past 24 hours.

XTZ, the native cryptocurrency of blockchain network Tezos, has become the top-performing cryptocurrency in the past 24 hours. Its value has surged by 38% to trade at a seven-month high of $1.13 at the time of writing.

However, this price increase has triggered growing selling pressure, which could lead to a potential pullback.

Tezos’ Strong Growth Signals

XTZ's price has climbed by 38% over the past 24 hours and currently ranks as the market’s top gainer. This surge comes after the announcement that staking platform Everstake will support the cryptocurrency.

Moreover, a recent Q3 2024 report by analytics platform Messari highlights strong growth signals for Tezos. The report showcases an increase in transaction volume, more decentralized applications, a rise in upgrade proposals, and a growing active validator count.

However, recent price movements have prompted many XTZ holders to secure profits, which is evident from the spike in the coin’s exchange inflow. According to Coinglass, as of Tuesday, XTZ's exchange inflow is $2.22 million, marking its highest since the beginning of the year.

When an asset's exchange inflow spikes, a large volume of that asset is being moved to exchanges to be sold from wallets or other platforms. This can put downward pressure on the asset's price, causing it to shed its recent gains.

Furthermore, overbought readings from the coin’s Relative Strength Index (RSI) also confirm the possibility of a price correction in the short term. At press time, XTZ's RSI is 74.26.

The RSI indicator measures an asset’s oversold and overbought market conditions. It ranges between 0 and 100, with values above 70 suggesting that the asset is overbought and due for correction. On the other hand, values below 30 indicate that the asset is oversold and may witness a rebound.

Therefore, XTZ's RSI of 74.26 suggests it has experienced strong upward momentum and may be due for a correction or pullback. This indicates that the coin’s price has risen too quickly, and there might be an increased risk of a price reversal.

XTZ Price Prediction: Coin May Drop Below $1

XTZ is currently trading at $1.13, holding above the $1.07 support level. If buying momentum weakens, the price may drop to this key support. A failure to maintain $1.07 could push XTZ below $1, potentially falling to $0.97 — a 14% decline from its current value.

If the uptrend continues, XTZ could break past the $1.19 resistance and advance toward $1.40, signaling further bullish momentum.