XTZ holders, particularly those that bought close to the underside of the bear market in June, are up a tad over 60%. Nonetheless, the cryptocurrency simply touched its first main resistance stage. This implies a considerable pullback may be on the playing cards this weekend.
XTZ has thus far managed to push as excessive as $1.94 this month. This represents a 62% upside from its lowest worth level in 2022. Its $1.88 press time worth appeared to replicate the larger promoting stress at that worth vary, resulting in a slight retracement on the charts. The promoting stress in query was fueled by the 0.236 Fibonacci stage.
Supply: TradingView
What ought to we anticipate from XTZ on the stated stage?
Costs usually push previous Fibonacci retracement traces, however provided that there’s sufficient momentum to take care of the trajectory. Nonetheless, an opportunity in worth traits throughout the Fibonacci vary may be an indication that the worth is about to pivot.
A kind of indicators is the outflows in market cap close to the $1.75 billion stage. The market cap highlighted a double rejection of the upside throughout the identical vary, thus confirming a robust resistance zone.
Supply: Santiment
XTZ has already misplaced roughly $500 million after its second retest of the identical zone. This aligned with investor sentiments which have been risky since 5 August. This was across the identical time that XTZ’s worth motion pushed into the Fibonacci retracement zone.
FTX’s Funding Price underscored the weakening investor sentiment. Nonetheless, it additionally highlighted some sentiment restoration, which gave the impression to be in step with XTZ’s resilience in opposition to the draw back at its press time stage.
Supply: Santiment
Tezos blockchain leans closely in direction of the NFT market. This implies its NFT volumes can provide us an honest measure of the extent of demand for XTZ at any given level. The upper the NFT volumes, the upper the demand for the altcoin.
The community noticed wholesome progress in NFT commerce volumes during the last 2 weeks. The aforementioned discovering corresponded with the wholesome worth progress seen throughout this era. Nonetheless, NFT volumes have tanked barely since 10 August. In different phrases, NFT volumes could fail to supply important demand to help the worth.
Conclusion
XTZ’s outlook suggests a excessive likelihood of a pullback. Nonetheless, this isn’t essentially a assure. XTZ is already demonstrating some resistance in opposition to the bears. Market circumstances may prove in favor of the bulls, through which case XTZ may proceed its rally on charts.
