XDC Technical Analysis: Will Divergence Crash The Double Bottom?
Table of contents
The XDC price action displays a rising trend in the daily chart, increasing the possibility of a double-bottom pattern. However, the bearish divergence in the RSI slope warns of a downtrend continuation. So, should you reconsider holding Xinfin?
Key Points:
Source - TradingView
XDC Technical Analysis
As mentioned in our previous analysis, the XDC price action continues the attempt to create a double-bottom pattern. Over the last week, a bullish launch from the 50-day EMA drives the market value higher by 10% leading to three bullish candles.
The bull run breaks above the 100-day EMA and the psychological mark of $0.030 with a spike in trading volume. However, the daily candle shows a bearish influence with a 1.28% drop in the market value, reflecting a potential retracement to the 100-day EMA.
Therefore, questions about the bullish trend sustaining in the daily chart are rising, while some expect it as a retest of the broken trendline.
If the buying pressure grows over the day, the Xinfin Network market price will rise to $0.036 and complete the bullish pattern. In such a case, sideline traders can take a breakout entry position with a target of $0.42.
On the other end, if the bearish momentum increases, a reversal will dump the XDC prices to the 100-day EMA at $0.031.
Technical Indicators
The RSI indicator shows a bearish divergence in the nearly overbought zone, reflecting weakness in the underlying bullishness. Moreover, the narrow gap between the sideways-moving MACD and signal lines displays an increase in selling pressure.
Therefore, the XDC technical analysis suggests that traders can find a selling opportunity if the daily candle closes below the 100-day EMA.
Resistance Levels - $0.036 and $0.042
Support Levels - $0.031 and $0.026