• The XTZ price is up 61% since the start of the year.
• However, daily chart readings revealed that a price correction could be imminent.

According to data from the cryptocurrency price monitoring platform CoinMarketcapTezos’ native coin XTZ ranked as one of the best-performing crypto assets in the past 24 hours.

Trading hands at $1.17, the altcoin’s price rose 4% during that period. In the last week, the XTZ price also grew by 4%.

While bullish sentiment lingers in the market at press time, a closer assessment of XTZ’s performance on a daily chart revealed that a price drop could be in the offing in the coming week.

---

Realistic or not, here it is XTZ Market Cap in BTC terms

---

brace for impact

Widespread growth in the overall cryptocurrency market saw the price of XTZ surge 61% since January 1. Investors looking to make a quick profit began buying into coins, causing key indicators like the Relative Strength Index (RSI) and Money Flow Index (MFI) to hit overbought highs.

However, XTZ began to see a dip in bullish conviction on Jan. 14 when its Chaikin Money Flow (CMF) embarked on a downtrend as its price rose. This created a bearish divergence which often suggests an impending price correction.

A bullish price coupled with a falling CMF means that the buying pressure for the asset in question is not as strong as the price increase would suggest.

This divergence could be a sign that the rally is not sustainable and that the price may be waiting for a correction. Still in a downtrend, XTZ’s CMF was 0.10 at press time.

---

Read Tezos’ [XTZ] price prediction 2023-24

---

Additionally, an examination of the Aroon indicator for XTZ showed that while the altcoin’s price may be rising, the bullish momentum has weakened. At press time, the Aroon Up line (orange) was pegged at 42.86%.

The Aroon Up line is an indicator that measures the strength and recency of an asset’s uptrend. A value close to 100 indicates a strong uptrend and a recent high, while a value close to zero indicates a weak uptrend and a long-ago high. This is a signal of a possible trend change.

Finally, a death cross was detected with the 50-day moving average (blue) below the 200-day moving average (yellow). This crossover is considered a bearish signal and is often taken as an indication that a downtrend is about to start or that the current uptrend is losing steam.