XDC Network [XDC] faced rejection at the $0.051 local resistance zone on the 20th of December. An earlier AMBCrypto report pointed out that the long-term trend was bearish and that the $0.051 was a local supply zone.
This observation has been correct so far, but XDC has not progressed its downtrend. Instead, it seemed to be trading within a short-term consolidation phase. The $0.045 and $0.051 levels were the ones to watch out for in the coming days.
The Bitcoin [BTC] price action gave no boost to XDC. Bitcoin faced rejection at the $90k psychological round-number resistance. A lack of market-wide bullish strength and weak buying pressure on XDC helped explain why the altcoin continued its decline.
Exploring if the downtrend has stalled
The 1-day structure remained bearish. The evidence for this came on Sunday, the 14th of December, when XDC made a new lower low. Since then, another bearish break on the 1-day chart has not arrived.
A move below $0.0460 would result in a bearish continuation. On the other hand, a rally back above the local high at $0.518 would see a bullish structure shift. This nearly occurred on Saturday, the 20th of December.
It was not to be. A day later, XDC saw a 9.81% loss, falling back to the $0.0460 level. This reinforced how important these two swing points were.
Mapping the possible bullish XDC route
The move that cemented the bearish continuation on the daily chart was used to plot a set of Fibonacci levels. At the time of writing, the 50% retracement level acted as resistance, halting the XDC bounce.
The $0.0489, $0.0496, and $0.0506 resistance levels can rebuff bullish advances. The OBV on the H4 chart was trending higher- if the buying pressure continues to rise, a bullish structure shift is possible.
Traders, look for THESE short position entries
The Fibonacci retracement levels plotted above, and the swing high at $0.0518, were clear invalidation levels for bearish traders. To the south, the $0.0446 and $0.0424 levels remained the bearish targets.
Final Thoughts
- The XDC Network token price remained in a bearish trend, despite the volatility of the past week.
- Traders can remain bearishly biased until the $00518 level is breached on the 1-day timeframe, which would signal a bullish structure shift.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
