Recent data indicates a substantial increase in trading volume for XYO, with a notable 24-hour surge of 67% as reported by CoinMarketCap. Over the same period, the price saw a rise of 6.9%, contributing to a weekly gain of 17%.
These recent positive movements have propelled XYO’s market capitalization from $74 million at the beginning of the month to $123 million. However, an analysis of technical indicators and on-chain data presents a mixed outlook for the token.
Pattern Analysis: XYO’s Asymmetrical Triangle Formation
An asymmetrical triangle pattern has emerged on XYO’s four-hour chart, suggesting the potential for a breakout towards higher levels or a reversal in trend, depending on market dynamics.
Currently, XYO is testing the resistance level at the upper boundary of this triangle formation, although a sustained uptrend would require increased trading volumes to support further upward movement.
The Awesome Oscillator (AO) reveals strengthening bullish momentum through the escalation of green histogram bars. If this uptrend persists, XYO could target $0.0114.
However, caution is warranted as bearish indications are also present, notably evidenced by the negative Chaikin Money Flow (CMF) reading of -0.11, indicating a greater selling pressure over buying momentum.
This scenario could precipitate a trend reversal, potentially leading to a downward breach below the lower boundary of the asymmetrical triangle towards the support level at $0.007.
Increased Profitability of Wallets
The recent upswing in XYO’s performance has resulted in a notable 20% rise in the number of profitable wallets over the past month, climbing from 36% to 56%. Concurrently, the percentage of wallets in losses has decreased from 58% to 37%.
An uptick in wallet profitability generally fosters a positive market sentiment. Nevertheless, traders might opt to capitalize on gains, potentially triggering a downturn. Hence, monitoring spikes in selling activity becomes crucial to anticipate market movements.
Evaluating XYO’s MVRV Ratio
The Market Value to Realized Value (MVRV) ratio for XYO indicates a potential undervaluation, currently standing at 0.51 with minimal changes over the past week.
A low MVRV ratio signifies an accumulation zone for new investors whilst also signaling that existing investors are holding unrealized losses. Consequently, any price advancements may attract profit-taking activities, potentially leading to a corrective phase in prices.