- XYO had a bullish structure on the hourly time frame.
- The moving averages and $0.0284 were the next support levels for buyers to defend.
The XYO Network crypto (XYO) rose 185% in 24 hours, with most of those gains coming in a span of six hours as the bulls reversed a short-term retracement.
As it stands, the bulls were dominant and the $443 million market cap asset is expected to soar in the coming months.
The $0.02 level offers temporary resistance
Source: XYO/USD on TradingView
On November 18-19, XYO saw an 81% rally in 24 hours. Following this surge, the token saw a 26% retracement over the next two days but managed to consolidate around the $0.009 area. On December 2, as Bitcoin continued to trade around $95,000, XYO made another upward move.
To better understand this movement, two series of retracement levels were plotted on the 1-hour chart. The first set captured the initial impulse move from $0.00857 to $0.0199, a 131% increase in just 21 hours, with volume well above average.
After this impulsive move, there was a retracement to the $0.0151 level, almost retesting the $0.0129 level, which is the 61.8% Fibonacci retracement level. Following this, XYO gathered forces for another northward push, gaining 170% in six hours.
The 50% level of the second set of retracement levels has been tested. An hourly close above $0.032 would maintain a bullish market structure. However, a decline below $0.0284 could indicate an early sign of a retracement towards $0.0217 or lower.
On Sale Volume (OBV) has increased significantly over the past two days, showing increased demand. Meanwhile, the moving averages and Money Flow Index (MFI) reflected the bullish momentum in XYO.
However, there is a bearish divergence on the MFI on the 4-hour chart, which could warn of a near-term price decline.
Has the rally just started?
Source: TOTAL3 on TradingView
The altcoin’s market capitalization has seen a strong upward trend over the past month and is near the all-time high of $1.13 trillion set in November 2021. This happened after the descending channel broke out in september.
Read XYO Network (XYO) Price Forecast 2024-25
The increase in altcoin market cap indicates extremely bullish sentiment in the crypto market. Although more gains are expected overall, not all tokens will perform equally well.
Based on current evidence, XYO appears poised for further gains, and investors should hold off until longer-term conditions change.
Disclaimer: The information presented does not constitute financial, investment, business or other advice and represents the opinion of the author only.
