XTZ soars 100% in weeks — but will fading volume and RSI overbought signals lead to a correction? | Credit: Hameem Sarwar
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Key Takeaways
XTZ price broke above $1 for the first time since February after escaping a falling wedge pattern.
Volume peaked at $1.45 billion but has dropped to $680 million, potentially limiting the bounce.
Declining BBP suggests fading bullish pressure, while support at $1.06 and $0.93 could be tested.
XTZ, the native token of the Tezos blockchain, has flown under the radar for much of the market this year. However, that quiet run may be over.
Over the past few weeks, XTZ has surged more than 100%, catching traders’ attention.
The rally pushed Tezos above the $1 mark for the first time since February 1—a key psychological and technical milestone.
Here’s how XTZ pulled off the breakout and what might come next regarding its price.
Tezos Hits Fresh Highs
After breaking out of a falling wedge pattern, Tezos (XTZ) climbed to a high of $1.15.
The wedge, marked by steadily lower highs and lows since January, finally gave way as renewed demand for altcoins kicked in.
That momentum is reflected in the Money Flow Index (MFI), which has soared to 96.91, signaling strong capital inflows into the coin.
If this buying pressure holds, XTZ could rebound above $1.15, even after a brief pullback to around $1.09.
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The Awesome Oscillator (AO) also validated this thesis. From the image below, the AO reading has formed higher histogram bars, indicating bullish momentum around the coin.
As long as the bars do not turn red or fall below the previous high, the Tezos price rally might still be intact.
Apart from this setup, the trading volume seems to have contributed to this hike. According to Santiment data, the XTZ volume on July 19 was less than $80 million.
Yesterday, July 20, it spiked to $1.45 billion, indicating notable market interest in the cryptocurrency. Typically, the rising volume alongside increasing Tezos price should add strength to the uptrend.
However, as of this writing, it is no longer the same, as the trading volume has declined to 680.36 million. If this trend continues, XTZ’s price might struggle to hold to the $1 mark in the short term.
Regarding the short-term outlook, the XTZ/USD 4-hour chart shows that the XTZ price failed to break past $1.22 because it was overbought.
Earlier, the Relative Strength Index (RSI) climbed to 83.6, validating the overbought condition. This forced Tezos to retrace and the bulls to reduce their control.
From the image below, the Bull Bear Power (BBP) has seen a decline in the height of the histogram bars. While this does not imply that bears are now in control, it indicates fading buying pressure.
Should this remain the same, the Tezos price might slide below $1.06 and hit $0.93. In a highly bearish case, it could decline to $0.85.
However, it is likely that the correction might only last a while. Should that be the case, XTZ’s price might bounce back, and this time, it could rally toward $1.69.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
