XDC Network (XDC) was rejected at the $0.051 resistance level and remains bearish on the 1D timeframe, with $0.046 and $0.051 being two key points to watch.
This development occurred against the backdrop of Bitcoin failing to generate upward momentum, as BTC was rejected at the psychological $90,000 mark, weakening the overall market's upward momentum and insufficient buying pressure from XDC to break through.
- XDC was rejected at $0.051 and is trading sideways in the short term instead of continuing its sharp decline.
- Losing $0.046 could trigger a continuation of the decline, and a break above $0.0518 would confirm a bullish reversal on the 1D timeframe.
- Fibonacci resistance zones are located at $0.0489, $0.0496, and $0.0506; downside targets are $0.0446 and $0.0424.
The downtrend of XDC on the 1D timeframe has not been broken.
The 1D structure of XDC remains bearish, as the price has formed a new lower Dip and there are no signs of a breakout from the sustained uptrend.
The main evidence comes from December 14th, when XDC formed a lower Dip on the 1-day chart, confirming that the downtrend remains dominant. Since then, XDC has not made another clear breakout, instead moving in a short-term consolidation phase around the $0.046–$0.051 range.
In a negative scenario, a break below $0.0460 would reinforce the continued decline. Conversely, if the price recovers and surpasses the local high of $0.0518, the structure could shift to a bullish structure on the 1D timeframe. The upward momentum nearly reached this condition on December 20th but failed to hold.
A day later, XDC fell 9.81% and returned to the $0.0460 region, indicating that the two swing points at $0.0460 and $0.0518 are Vai as "boundaries" for both buyers and sellers.
Bitcoin was rejected at $90,000, leaving XDC without upward momentum.
The fact that BTC failed to break above $90,000 weakened the overall market bullish sentiment, contributing to XDC difficulty in breaking out of the resistance zone.
XDC did not receive significant impetus from Bitcoin as BTC was rejected at the round resistance level of $90,000. When the market lacks "pulling force" from a leading asset, altcoins often struggle to sustain a rally, especially if buying pressure does not significantly improve.
In this context, XDC continues to face pressure due to weak buying power, making any upward bounces easily followed by selling pressure upon reaching the local supply zone of $0.051. Therefore, the performance of BTC remains a crucial variable to monitor in parallel, although XDC 's trading signals are primarily based on its own technical levels.
Fibonacci levels show multiple layers of resistance ahead of $0.051.
Fibonacci retracement levels are acting as resistance zones, with the 50% retracement level as resistance and the $0.0489–$0.0506 levels potentially halting the rally.
The confirmed decline continues on the daily chart used to draw Fibonacci levels. At the time of recording, the 50% retracement level acted as resistance and blocked XDC's bounce, indicating that buyers lacked the strength to reclaim the lost price levels.
The three notable resistance zones are $0.0489, $0.0496, and $0.0506, respectively. These are levels where the price could be rejected during short rallies before approaching the supply zone of $0.051.
On the H4 timeframe, the OBV indicator is trending upwards, implying improved buying pressure. If the OBV continues to rise and the price breaks through the aforementioned resistance levels, the likelihood of a bullish structural shift increases, but confirmation still requires breaking above $0.0518 on the 1D timeframe.
Set reference points for a Short order: invalid zone and target for further decrease.
With a bearish scenario in mind, the $0.0518 level and Fibonacci retracement levels are invalid points for Short, while downside targets lie at $0.0446 and $0.0424.
The Fibonacci retracement levels above and the swing peak at $0.0518 Vai as "invalidation" markers if you are holding a bearish outlook. In other words, if the price breaks above $0.0518 on the 1D timeframe, the bearish argument will weaken significantly as the structure may shift to bullish.
Conversely (to the south), the two price targets are $0.0446 and $0.0424. These are the levels that sellers could aim for if $0.0460 is broken and downward momentum resumes.
Conclude
XDC remains in a downtrend despite strong volatility last week, and the bearish trend is expected to continue until the price surpasses $0.0518 on the 1D timeframe.
- The price of the XDC Network Token remains bearish, despite significant volatility over the past week.
- Traders may continue to favor a bearish scenario until the $0.0518 level is broken on the 1D timeframe, at which point there will be a signal for a shift to a bullish structure.
Frequently Asked Questions
What is the most important price level to determine whether XDC is still falling or has reversed?
The two key levels are $0.0460 and $0.0518. A break below $0.0460 would suggest a continuation of the downtrend, while a break above $0.0518 on the 1D timeframe could confirm a shift in structure to an uptrend.
What are the nearest resistance zones for XDC according to Fibonacci?
Nearby resistance zones include $0.0489, $0.0496, and $0.0506. These levels could see price rejection during rallies before moving toward the $0.051 region.
Where would XDC 's downside target be if it breaks below $0.0460?
The downside targets to watch are $0.0446 and $0.0424. These are lower price zones that could be tested if selling pressure increases and the downtrend continues.
