Tezos (XTZ) holders, specifically those who bought around the June market bottom, are up nearly 60%. Nevertheless, the altcoin just hit its initial massive resistance. That means a significant pullback could emerge this weekend.
The altcoin has so far pushed to the $1.94 high this month. That represented a 62% surge from 2022’s lowest mark.
Its press time price of $1.88 appeared to highlight the massive selling momentum around that value area, catalyzing a brief retracement on the price charts. Meanwhile, the 23.6% FIB level fueled the mentioned selling momentum.
What from XTZ Around the Mentioned Level?
Prices often move beyond the FIB retracement level, but sufficient momentum has to support that trajectory. Nevertheless, price characteristics around the FIB range may signal that XTZ is almost pivoting.
One of the signals is outflows in market capitalization near $1.75 billion. The market cap displayed double rejections of the uptrend at the range. Therefore, affirming a massive resistance level.
Tezos has already surrendered nearly $500 million following its 2nd retest at the same level. That matched the investor cues, which remained volatile since August 5. That was when XTZ’s price pushed into the FIB retracement territory.
FTX Funding Rate emphasized the dwindling investor sentiment. Nevertheless, it also indicated some sentiment revival, which appeared to match XTZ’s resilience to downtrends at the press time prices.
Tezos network focuses on the NFT market. That means its non-fungible token volumes might reveal Tezos’ demand intensity. Higher NFT volumes translate to higher token demand.
The blockchain witnessed an impressive surge in NFT trade volumes within the past two weeks. The narrative highlighted above matched the healthy price upticks during this phase.
Nevertheless, non-fungible token trades have dropped briefly since August 10. That means NFT volumes might fail to offer substantial demand to bolster prices.
Final Thought
Tezos’ (XTZ) outlook reveals a higher chance of pullbacks. Nevertheless, this isn’t essentially a guarantee. The altcoin is already showing some resilience against bearishness. Market sentiment might also flip bullish, supporting continued XTZ rallies on the charts.
Stay tuned for upcoming developments.