See More

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

2 mins
Updated by Ryan Boltman
Join our Trading Community on Telegram

In Brief

  • XTZ price is bouncing back after nearly slipping to $0.71 owing to the market-wide bearishness.
  • CMF is exhibiting a surge in inflows, which is a positive sign of increasing buying pressure.
  • The Funding rate, however, fluctuates between the positive and negative zones, hinting at potential consolidation.
  • promo

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.

Tezos CMF.
Tezos CMF. Source: TradingView

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)?

Tezos Funding Rate.
Tezos Funding Rate. Source: Coinglass

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. 

Read More: Tezos (XTZ) Price Prediction 2024/2025/2030

XTZ Price Analysis.
XTZ Price Analysis. Source: TradingView

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.

Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024

Trusted

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Frame-2t314.png
Aaryamann Shrivastava
Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...
READ FULL BIO
Sponsored
Sponsored