Over $650k worth of Tezos (XTZ) has just been moved to Binance.
With XTZ prices shaky after a near perpendicular rise, this move, as per Twitter commentators, is a strong sell signal.
Tezos Stellar Performance
It must be noted that XTZ performance has been stellar in the last two months.
Perched at 10th in the market cap leaderboard, holders are deep in green despite dismal performance as prices consolidate in the last trading week.
From coin trackers, XTZ is up 6X in the last year and 115% in the past 30 days. At this rate, the coin, buoyed by solid fundamentals, is one of the best performers, out-ranking Bitcoin and leading crypto assets in the same time frames.
In its journey and lift-off to 10th, Tezos flippened the likes of Cardano and ChainLink. These two projects have more followers and a solid community.
Notably, Cardano, for its ambition and foundations routed in peer research, recently laid the groundwork for Shelly Phase.
Shelly ensures complete decentralization, a feature that though on paper is hardly achieved in practice.
XTZ Technical Candlesticks Point to Weakness
From the candlestick arrangement, XTZ is trading at near all-times high as visible from the weekly chart.
Although proponents are positive that the coin will soon soar to highs of $5 and even $10 as more projects launch on the smart contracting platform, candlestick arrangement reveal an overvaluation. Notably, last week’s candlestick is well above the upper Bollinger Band.
The Bollinger Band, a technical indicator forwarded by John Bollinger, is used to measure over-and-under valuation.
At default settings, and at 5% of the time, prices closing above or below the two bands hint of a selling or buying opportunity.
Here, XTZ prices closed above the upper BB and sellers, from a technical perspective and considering the 6X rally, can fade the existing trend and short the coin.
This possibility, following whale movement of coins to Binance, cements the current bear position. If prices have peaked and XTZ bears are sensing opportunity, odds are XTZ prices may significantly drop to $2. Considering this, XTZ would falter and fall off the top-10.
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Dalmas is a very active cryptocurrency content creator and highly regarded technical analyst. He’s passionate about blockchain technology and the futuristic potential of cryptocurrencies and enjoys the opportunity to help educate bitcoin enthusiasts through his writing insights and coin price chart analysis. Follow him at @dalmas_ngetich