After reaching a local cycle of $ 0.049 in January, XCN entered a downward trend, allowing significant value in the coming months. The decline led to a net drop to a minimum of $ 0.007 on April 7. However, it marked a turning point.
Since then, the request for Altcoin has soared, increasing its price by 171%. With an increasing bullish dynamic, XCN seems ready to extend these gains.
XCN bursts with a bullish momentum
From the bottom, XCN has strongly rebounded, moving over a key resistance trend line. The breach sparked a bullish movement that prompted Altcoin to record significant gains during last week.
On the daily graphic, the balance of XCN’s powers (BOP) supports the current rally. At the time of the press, this momentum indicator, which measures the purchase and sale of pressure, is greater than zero at 0.24.
When the BOP of an asset is positive, this indicates that buyers control the market, exercising more pressure than sellers. It is a bullish sign, suggesting that the upward price movement of XCN is motivated by high demand.
A BOP constantly positive for the token would indicate a sustained purchasing momentum, which, if maintained, could cause continuous prices growth.
However, the merchants derived from XCN do not share this bias bruise. Token’s constantly negative financing rate reflects this. This is at -0.032% at the time of the press, highlighting the demand for short positions.
The financing rate is a periodic payment exchanged between long and short position holders in perpetual term contracts. It is designed to maintain the price of the contract online with the cash price of the assets.
When the financing rate is negative like this, short-term post holders pay long-term post holders, which indicates that the market is lower, with more Paris traders on price reductions.
XCN’s climbing purchase pressure and the negative financing rate indicate a divergence between the feeling of the cash market and the positioning of the derivative market. This trend suggests that if the wider derivative market expects a drop in prices, a actual purchasing activity on the cash market stimulates momentum upwards, preparing the track for short pressure if the rally continues.
The XCN price goes beyond the 20-day EMA, Traders Eye Rallye
The XCN rally during last week increased its price above the 20-day exponential mobile average (EMA). The 20 -day EMA measures the average negotiation days of an asset in the last 20 days of negotiation, which gives more weight at recent prices. When the price rises above, it indicates that the purchase pressure is high.
While XCN breaks above this level, he confirms that the asset enters an upward trend. Merchants often look for this type of crossing as a sign of bullish strength, indicating increased purchase pressure and a possible continuation of the rally.
If XCN maintains its upward trend, it could be negotiated at $ 0.023.
On the other hand, if the increased trend faces a correction, XNC could fall to $ 0.016.
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