XDC Network [XDC] posted a 6.14% surge in the past 24 hours. It is one of the standout performers in the crypto market in the short term.
Most altcoins were in a slump, following Bitcoin’s [BTC] drop to $85.7k in the early hours of Tuesday.
The recent XDC rally was partly driven by the positivity in the market following an exchange listing. On the 10th of December, Biconomy announced the listing of the XDC/USDC spot trading pair.
Assessing the XDC long-term trend
On the 1-day chart, XDC had a bearish structure and a prevailing downtrend.
The CMF showed that significant capital was flowing out of the market, representing selling strength. The MACD showed momentum was neutral over the past week.
Both the MACD and signal lines were below zero, once again affirming the overall bearish momentum. To add to this, on the 14th of December, XDC closed a daily trading session below the previous lower high at $0.0475.
This represented a continuation of the bearish trend on the chosen timeframe.
The 1-hour timeframe showed a strong bout of bullish momentum on Monday, the 15th of December.
This bullish impulse ran into the $0.051 supply zone, which marked a local swing high on the hourly chart.
Since this retest, XDC has retraced by 4.2% in under 24 hours.
However, its technical indicators were more positive- the CMF showed significant buying pressure, though the MACD showed a bearish crossover from the MACD and signal lines.
The less likely scenario for XDC traders
The 1-day timeframe is bearish, but the CMF’s surge in the hourly chart hinted at a possible short-term reversal. If XDC can defend the $0.0487 local support, there is a chance of a rally beyond $0.051. Traders shouldn’t bet on this scenario since the daily timeframe is bearish.
Traders’ call to action – go short when...
Given the market-wide fear and Bitcoin weakness, it is more likely that XDC will face losses soon. A drop below $0.0487 would flip the hourly structure bearishly, giving lower timeframe traders a chance to go short.
Their targets would be the swing low at $0.046 and the Fibonacci extension level at $0.044.
Final Thoughts
- XDC saw a 6% rally on the back of a Biconomy rally and a retest of a local supply zone at $0.051 on Monday.
- Lower timeframe traders can wait for a bearish shift, despite the buying pressure, as it would align with the 1-day timeframe’s trend and give more profitable trade opportunities.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
