Why is XDC’s Price Rising Today? Can This Rally Sustain?

XDC Network (XDC) experienced a significant 6.14% price increase over the past 24 hours, making it one of the notable performers in the cryptocurrency market recently. This rally comes amidst an overall market downturn, primarily influenced by Bitcoin's recent price drop. A contributing factor to XDC's rise is its listing on Biconomy, which introduced the XDC/USDC spot trading pair.

Key Takeaways

XDC’s price increased by 6.14% in the last 24 hours.
The rise contrasts with a general market slump following Bitcoin's price decline.
A new exchange listing sparked the rally for XDC.
The long-term chart indicates bearish momentum, while short-term signals show potential for reversal.
Traders are advised to monitor specific price levels to make educated trading decisions.

Analyzing the XDC Long-Term Trend

XDC 1-day Chart

Source: XDC/USD on TradingView

The 1-day chart reveals a bearish trend for XDC, suggesting a prevailing downward movement in the market. The Chaikin Money Flow (CMF) indicates that significant capital is exiting the market, which means there is selling pressure. The Moving Average Convergence Divergence (MACD) shows that momentum has been neutral over the last week, as both the MACD and its signal line are below the zero mark, reinforcing the existing bearish sentiment. Additionally, on December 14, XDC closed a trading session below the previous lower high of $0.0475, further indicating the continuation of this bearish trend.

XDC 1-hour Chart

Source: XDC/USD on TradingView

On the shorter 1-hour timeframe, there was a notable bullish momentum observed on Monday, December 15. This upward movement reached the $0.051 supply zone, marking a local swing high on the hourly chart. Despite this positive impulse, XDC has since pulled back by 4.2% within a day. However, technical indicators show more favorable signs: the CMF is reflecting considerable buying pressure, although the MACD has indicated a bearish crossover between the MACD and signal lines.

A Cautious Outlook for XDC Traders

Although the 1-day timeframe appears bearish, the significant rise in the CMF on the hourly chart suggests a potential short-term reversal might occur. If XDC can maintain the local support level at $0.0487, there is a possibility for it to rally past the $0.051 mark. Nonetheless, traders should approach this scenario with caution, given that the daily timeframe remains bearish.

Recommendations for Traders

Considering the prevailing fear in the market and Bitcoin's weakness, it is likely that XDC could face further losses soon. If the price drops below $0.0487, it would shift the hourly structure to a bearish outlook, providing lower timeframe traders the opportunity to enter short positions. Their target levels could include the swing low at $0.046 and the Fibonacci extension level at $0.044.

Final Thoughts

Disclaimer: The information provided herein does not constitute financial, investment, trading, or other types of advice, and solely represents the author's opinion.