Date: Sat, Jan 11, 2025, 08:00 AM GMT
In the cryptocurrency market, after a bearish December, the historical January downturn is proving true again this year. Bitcoin (BTC) dropped sharply from $102K to its current fluctuating level of $94K. The rise of BTC dominance above 58.17% has triggered a broader altcoin decline.
However, XDC, the native token of the XDC Network—a hybrid blockchain—has stood out in the bearish market. The token has surged by over 16% in the last 7 days, showcasing remarkable strength amid the broader sell-off.
Double Bottom Breakout
XDC has demonstrated a classic double bottom breakout, a bullish reversal pattern. This formation occurred as the price bottomed twice near the $0.070 level (highlighted in the chart) before reversing upward. The breakout above the neckline at $0.088 on January 5 marked the completion of this pattern, accompanied by strong trading volume, further validating the breakout.
Following the breakout, XDC surged to a local high of $0.1051, representing a significant upside move of nearly 20% from the breakout point. However, as is typical with such patterns, the token experienced a pullback, retesting the neckline level successfully. This retest confirmed the breakout’s validity, turning the $0.088 level into a solid support zone.
Currently, XDC is consolidating at $0.098, showing strong momentum as it attempts to break above the local high of $0.1051. A successful move above this resistance could signal the start of a larger rally, potentially targeting the psychological resistance at $0.13 and beyond.
The MACD (Moving Average Convergence Divergence) is turning bullish, with the MACD line crossing above the signal line. This crossover indicates building momentum, aligning with the double bottom breakout.
Conclusion
XDC Network’s strong technical setup and the double bottom breakout hint at a potential rally in the coming days. However, broader market trends remain dependent on Bitcoin (BTC) holding its support between $91K and $94K.
If BTC stabilizes, XDC’s bullish pattern could materialize into significant gains, pushing the token toward the $0.13 target. Traders should keep an eye on key resistance levels and broader market movements to capitalize on this opportunity.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making any investment decisions in cryptocurrencies.