In the volatile world of the cryptocurrency market, the price of the digital asset called Tezos (XTZ) rose noticeably today. The altcoin increased by more than 13% despite the decline in general market conditions: it was trading at $ 0.6486 and suddenly rose to $ 0.7386. Moreover, the price increase has been spectacular, with an almost 800% increase in trading volume in the last 24 hours. Here are the details…
The altcoin Tezos (XTZ) has attracted attention, rising by an impressive more than 13% despite the overall market decline. Tezos dropped to $0.636 in yesterday’s trading and found major support there. The altcoin ultimately experienced a sharp recovery. Several cryptocurrencies, including Tezos, rose as the total market cap fell to $1.08 trillion.
Although the exact reason for the increase is unknown, the sudden price movement has raised the possibility of a “short squeeze”. A short squeeze is when an asset rises rapidly due to short positions (investors betting that the asset will fall). Investors who want to exit short positions can trigger the asset to appreciate. The short squeeze phenomenon occurs when the price of an asset rises rapidly due to many short sellers being forced to close their positions.
If we take a closer look at the data; In the last 24 hours, Tezos has seen $553,050 worth of liquidations; of which $261,100 represented short positions. Long positions witnessed even larger liquidations at $291,880.
Even more compelling is the massive increase in trading volume, reaching a value of $112 million, up 800% in the last 24 hours. Trading volume is an important indicator in the cryptocurrency market because it reflects the popularity and liquidity of an asset. This huge increase in XTZ’s trading volume shows that interest in this digital asset is rapidly increasing.
Tezos, on the other hand, saw a larger derivatives volume increase of 2,340% with $244.11 million in transactions, according to Coinglass data. An increase of this magnitude in trading activity generally indicates that investors are placing bets with the aim of profiting from recent market volatility.
Looking at the official X/Twitter account, it appears that Tezos is furthering its NFT journey with football club Manchester United. In a new post, Tezos made an announcement about free digital souvenirs ahead of the upcoming Manchester United match.
You can follow the current price movement here.