XDC Technical Analysis: Double Bottom Excites XDC Holders
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The XDC price action shows a bullish reversal from the $0.025 mark creating the double bottom pattern in the daily chart. Currently, the bullish reversal accounts for a price jump of 30% in the last three weeks, increasing the possibility of a bullish breakout. So, should you consider buying XDC at lower levels?
Key Points:
Source - TradingView
XDC Technical Analysis
The XDC price action displays a bullish reversal from $0.025 after the sellers failed to knock down the psychological mark. The recovery rally accounts for a price of 30% in the last three weeks and breaks the 100-day EMA. Furthermore, the recovery rally increases the bullish influence over the 50 and 100-day EMA, teasing a bullish crossover.
Currently, the price action displays a rounding bottom breakout as it exceeds the $0.30 mark reflecting a surge in buying pressure. In addition, the increase in trading volume supports the breakout candle increasing the possibility of a bull run to $0.035. Therefore, sideline traders can shortly expect a bullish entry opportunity with a breakout of $0.035.
A bullish breakout from the $0.0315 resistance gives an additional confirmation to complete the cup and handle pattern. With sustained buying, the altcoin would rise 15.4% higher to hit the neckline resistance of $0.0365.
Under a favorable bullish scenario, a breakout from the aforementioned neckline will accelerate the buying momentum.
On a contrary note, if prices turn down from the $0.0365 mark, the market participants may witness a prolonged range-bound rally.
Technical Indicators
The wide gap between the MACD and signal line reflects strong buying activity from traders. However, the daily-RSI slope surged to the overbought region, suggesting the prices may consolidate for a few sessions before hitting $0.0365.
Therefore, the technical indicators show a growing bullish inclination in the underline sentiments. As a result, the XDC technical analysis forecasts a bullish breakout of the $1.20 breakout.
Resistance Levels - $0.035 and $0.040
Support Levels - $0.031 and $0.029