During the last 24 hours, XYO Network’s [XYO] cryptocurrency witnessed a remarkable 185% surge, predominantly driven by a swift turn of events by the bulls that reversed a brief pullback.
At present, the bullish momentum appears to be prevailing, indicating a potential further surge for the $443 million market cap digital asset in the upcoming months.
Encountering Temporary Resistance at $0.02
Between November 18th and 19th, XYO encountered an 81% upsurge within a day. Following this uptick, the token experienced a 26% dip over the next few days but managed to stabilize around the $0.009 mark. On December 2nd, while Bitcoin was hovering around $95k, XYO made another upward move.
To analyze this movement more thoroughly, two sets of retracement levels were mapped out on the hourly chart. The first set captured the initial surge from $0.00857 to $0.0199, marking a substantial 131% gain within 21 hours, accompanied by notably high trading volumes.
Following this rapid increase, there was a retracement to the $0.0151 level, almost retesting the $0.0129 mark, which represents the 61.8% Fibonacci retracement level. Subsequently, XYO garnered momentum for another upwards push, registering a 170% gain in just six hours.
The 50% level of the second batch of retracement levels has been tested. A close above $0.032 on an hourly basis would affirm a bullish market stance. Conversely, a dip below $0.0284 might signal an early indication of retracement towards $0.0217 or lower.
The On-Balance Volume (OBV) surged significantly in the past two days, indicating escalated demand. Meanwhile, the moving averages and the Money Flow Index (MFI) portrayed the prevailing bullish momentum of XYO.
However, a bearish divergence is visible on the MFI in the 4-hour chart, potentially suggesting a brief pullback in prices.
Is the Upward Trend in Its Initial Stages?
The alternative coin market cap has shown a robust uptrend over the last month and is approaching the all-time high of $1.13 trillion set in November 2021 subsequent to the breakout from the descending channel in September.
This ascending trend in the alternative coin market cap reflects a highly bullish sentiment across the cryptocurrency market. While overall gains are anticipated, not all tokens are expected to perform identically.
Given the prevailing data, XYO seems well-positioned for further advancements, suggesting that investors should retain their positions until there is a noticeable shift in higher timeframe conditions.
Disclaimer: The information provided herein does not constitute financial, investment, trading, or any other form of advice and is purely the subjective opinion of the author.