Following a notable 60% drop from the recent peak, XDC found support and remained quiet for a week. Wednesday marked a major resurge and the price closed strongly. It repeats the pattern today and now looks strong.
XDC provided a sizeable discount during the past months of drops, although is not much compared to the accrued gains in the last six months. The bearish phase appears choppy due to low selling volume, but somehow, the $0.065 level held as support after extreme exhaustion in selling.
This brought a serious squeeze in the market and the crypto traded flat for a whole week. On Wednesday, it initiated a buy following a sudden surge in buying volume and the market closed with an engulfing bar.
Remaining indecisive throughout yesterday, it advanced surge today and appeared strong at the time of writing. While this signals a retracement, it may retake the $0.1 level before rolling back. This could bring a head-and-shoulder (H&S) formation capable of crashing the price to $0.032.
Failure to roll back could trigger a strong recovery to the peak with a potential breakup. That could bring a complete reversal in the trend as the bulls take control. As of now, XDC’s structure remains bearish on the daily chart despite posting some gains in the last three days.
Source: Tradingview
Right now, XDC is targeting the $0.088 resistance. While there are a lot of barriers on the way up, the $0.1 level is the next resistance to watch, along with $0.121 and potentially $0.156.
Towards the downside, the $0.065 level is supporting the market. If the price breaks lower with an H&S pattern, the lower range for drops would be $0.057 and $0.043 before reaching the main crash level.
Key Resistance Levels: $0.088, $0.1, $0.121
Key Support Levels: $0.065, $0.057, $0.043
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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