XDC Struggles Below $0.051 – Understanding the Importance of This Price Range

The XDC Network is currently facing challenges as it stalls below the $0.051 resistance level. This article explores the implications of this price point, the overall market trends influencing XDC, and the potential future movements of this cryptocurrency.

Key Takeaways

XDC has encountered resistance at the $0.051 level, indicating a current bearish trend.
The cryptocurrency has entered a short-term consolidation phase, oscillating between $0.045 and $0.051.
A move below $0.0460 could indicate continued bearish momentum, while breaking above $0.0518 could signal a shift to bullish sentiment.
Fibonacci retracement levels highlight critical resistance points at $0.0489, $0.0496, and $0.0506.

XDC fails to break the $0.0518 local resistance - More losses ahead?

Current Market Situation for XDC

The XDC Network [XDC] saw a rejection at the $0.051 local resistance zone on December 20th. Earlier insights from AMBCrypto pointed out that the long-term trend for XDC remains bearish, with $0.051 acting as a local supply zone. This trend has remained valid, although XDC has not made further declines; instead, it appears to be in a temporary consolidation phase. The price levels of $0.045 and $0.051 are crucial to monitor in the upcoming days.

The price behavior of Bitcoin [BTC] also failed to positively impact XDC, as Bitcoin itself experienced rejection at the $90,000 psychological resistance level. The overall lack of bullish momentum in the market and weak buying interest in XDC contribute to explaining its continued downturn.

Analyzing the Current Downtrend

XDC 1-day Chart

Source: XDC/USD on TradingView

On the daily chart, the structure for XDC remains bearish. This was confirmed on December 14th when XDC established a new lower low. Since then, no additional bearish breaks have occurred on the daily chart.

If the price dips below $0.0460, we could see further bearish continuation. Conversely, if XDC climbs above the local high of $0.0518, it could indicate a shift towards a bullish structure. This potential shift almost happened on December 20th.

However, on the following day, XDC experienced a loss of 9.81%, falling back to the $0.0460 level and reaffirming the significance of these two swing points.

Potential Paths for a Bullish XDC

XDC 4-hour Chart

Source: XDC/USD on TradingView

The bearish continuation seen in the daily chart is reflected in the Fibonacci levels plotted during this period. As of now, the 50% retracement level is acting as resistance, restricting any bounce for XDC.

The resistance levels of $0.0489, $0.0496, and $0.0506 could impede any bullish advances. On the four-hour chart, the On-Balance Volume (OBV) is trending upward, suggesting that if buying pressure continues to increase, a shift towards a bullish structure may be feasible.

Guidance for Traders

The Fibonacci retracement levels mentioned, along with the swing high at $0.0518, serve as clear invalidation points for bearish traders. For those looking at short positions, the downside targets remain at $0.0446 and $0.0424.

Final Thoughts

Disclaimer: The information provided here does not serve as financial, investment, trading, or any other form of advice and represents solely the opinions of the author.