XTZ Surges 256% in 24 Hours Amid Strong Short-Term Momentum

On SEP 8 2025, XTZ rose by 256.41% within 24 hours to reach $0.7269. Over the past week, the token has gained 17.89%, reflecting sustained upward momentum. The monthly increase stands at 112.52%, while the annual decline remains at a stark -4339.04%. The recent jump appears to be driven by short-term buying interest and positive technical indicators.

XTZ’s price action over the last 24 hours has shown a sharp reversal from prior bearish tendencies. The token has moved through multiple key support levels, suggesting a shift in market sentiment. While the long-term trend remains bearish, the recent 256% gain suggests a possible short-term reversal or a bullish bounce within a larger downtrend.

From a technical standpoint, the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) have aligned with the recent price breakout. The RSI has moved into overbought territory, while the MACD histogram has shown a notable expansion, indicating increasing bullish momentum. Traders are closely watching for a potential pullback to key Fibonacci retracement levels for entry points.

Backtest Hypothesis

To evaluate the strength of the recent price movement, a potential backtesting strategy was designed to simulate a trading approach based on the observed technical conditions. The strategy involves entering a long position when the price breaks above a 20-period moving average and the RSI crosses above 50. A stop-loss is placed below the 50-period moving average, while a take-profit target is set at the nearest resistance level identified by historical price action.

This approach aims to capture the upward thrust observed in the past 24 hours while managing downside risk. If applied to historical data, the strategy could help validate whether the recent breakout has a structural foundation or is merely a temporary spike driven by liquidity or order flow. The success of such a strategy would depend on the consistency of the trend and the reliability of the technical indicators under test.