Tezos (XTZ) Price Consolidation Continues as Bulls and Bears Battle

4 months ago 8

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Tezos’s (XTZ) price could reclaim some of the losses witnessed in the last couple of days; however, this would warrant a change in investors’ behavior.

Their sentiment would need to shift from bearish to bullish to support a recovery rally.

Tezos’ Investors Send Mixed Signals

XTZ price has a shot at climbing back the charts since the investors are slowly increasing the capital invested in the asset. The Chaikin Money Flow (CMF) indicator shows a significant surge in Tezos’ inflows. This is a positive sign, indicating an increase in buying pressure for the cryptocurrency.

This uptick in CMF suggests that more investors could be moving to accumulate XTZ. Increased buying pressure often correlates with upward price movement, reflecting growing confidence in the asset.

However, Tezos’s funding rate fluctuates between positive and negative territory. This volatility points to a lack of consensus among investors about the short-term direction of the market.

Positive funding rates generally hint at long contracts dominating the market, whereas negative rates suggest short contracts are leading. In the case of XTZ, though, this volatility in the funding rate points to a lack of consensus among investors about the short-term direction of the market.

Read More: What Is Tezos (XTZ)?

This could result in sideways movement in XTZ price.

XTZ Price Prediction: Recovery From Lows

The XTZ price is currently at a seven-month low of $0.79, bouncing back from $0.76. The altcoin fell below $0.70 during this week, touching $0.68. While the altcoin has bounced back, it may not see a rally anytime soon.

The mixed signals from investors point towards a period of consolidation for Tezos. XTZ could thus remain constricted within $0.76 and $0.87.

A breakout or breakdown would invalidate the bullish-neutral thesis, sending the XTZ price rallying or falling. The targets for the former condition are $0.94, while for the other, they are $0.60.

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