XDC stalls below $0.051 – Why THIS price range matters next

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

Source: XDC/USD on TradingView

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

Source: XDC/USD on TradingView

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