The XDC Network (XDC) recently captured attention with a significant price surge, defying a broader altcoin slump. This short-term rally, however, paints a complex picture when viewed against its prevailing long-term technical indicators, presenting a challenging landscape for traders.
XDC Network's Conflicting Signals
Short-Term Gains vs. Long-Term Downtrend
XDC experienced a notable 6.14% increase in a 24-hour period, a performance largely attributed to positive market sentiment following its listing on Biconomy as an XDC/USDC spot trading pair. While this provided a temporary boost, a deeper dive into the daily chart reveals a persistent bearish structure. Key indicators like the Chaikin Money Flow (CMF) signal significant capital outflow, reflecting strong selling pressure, and the MACD remains below zero, confirming a prevailing downtrend. Further solidifying this bearish outlook, XDC recently closed below its previous lower high at $0.0475, indicating a continuation of this downward trajectory in the long term.
Navigating Potential Trading Opportunities
Despite the overarching bearish sentiment on the daily chart, the hourly timeframe showed a strong bullish impulse, pushing XDC to retest the $0.051 supply zone before retracing. Short-term indicators present a mixed bag: the CMF suggests buying pressure, while the MACD shows a bearish crossover. Given the market's general apprehension and Bitcoin's recent weakness, the more probable scenario suggests further losses for XDC. Traders are advised to monitor for a break below the $0.0487 local support, which would confirm a bearish shift on lower timeframes and open up shorting opportunities towards targets like $0.046 and $0.044. Betting on a sustained rally beyond $0.051, while possible if $0.0487 holds, is considered less likely due to the dominant daily bearish trend.
