Tezos Surges 112% in a Month Driven by Whale Accumulation

Tezos (XTZ) has experienced a significant surge in value over the past month, with its price increasing by 112%. This rally has been largely driven by the activities of large investors, commonly referred to as whales, who have been actively accumulating the cryptocurrency. Over the past week alone, Tezos has seen an 80% increase in its value, reaching a 6-month high of $1.22 before slightly retracing to $1.169. This bullish trend has been supported by increased capital inflows and on-chain activity, with Tezos' market cap reaching $1.22 billion for the first time since January.

The rally in Tezos' price can be attributed to the increased activity of whales in the market. According to CryptoQuant, the Tezos Spot Average Order Size has turned green and remained so for the past week, indicating that spot markets are dominated by big whale orders. This metric suggests that whales are actively accumulating Tezos, as evidenced by two consecutive days of higher buying pressure relative to selling pressure. On July 19th, XTZ saw $72.2 million in buy volume compared to $71.72 million in sell volume, and on July 20th, buy volume rose to $37.87 million compared to $34.54 million in sell volume. This resulted in a buy-sell delta of $483k and $3.33 million, respectively, indicating spot aggressive accumulation.

In addition to spot market activity, futures markets have also shown increased bullish sentiment. Open Interest soared by 343% to $138 million, while derivatives volume spiked 2832% to $3.05 billion. This signals increased capital inflow and participation in the futures market, with Tezos' long-short ratio jumping to 1.1, indicating a higher demand for long positions. However, as prices have soared, so has the appetite for profit-taking. Tezos Spot Netflow surged to an 8-month high of $4.5 million, reflecting increased exchange deposits and indicating that investors are aggressively cashing out. Historically, increased exchange deposits have preceded price declines as downward pressure rises.

Despite the potential for profit-taking to disrupt the uptrend, Tezos has experienced favorable conditions inspired by whale accumulation. The altcoin's Relative Strength Index (RSI) surged from a low of 43 to 93, touching the overbought zone, while the Chaikin Money Flow (CMF) jumped from 0.08 to 0.27, confirming higher buying pressure. If whales maintain the current momentum, XTZ is likely to continue its uptrend and target $1.50. However, if profit-taking overwhelms the market, Tezos could see a correction and drop to $0.93. Overall, the recent surge in Tezos' price has been driven by increased whale activity and bullish sentiment in both spot and futures markets, but the potential for profit-taking remains a threat to the uptrend.