The XDC Network token has defied the broader market trend, rising 7% in the past 24 hours to become the biggest gainer among major cryptocurrencies.
With strong bullish momentum, XDC looks poised to extend its rally in the near term. This analysis examines recent market trends and highlights potential price targets for the altcoin.
XDC sees increased demand on the daily chart
Currently, XDC trades above the dotted lines of its Parabolic Stop and Reverse (SAR) indicator. This indicator tracks an asset's price trends and identifies potential reversals by plotting points above or below an asset's price.
When the asset price trades above the SAR dots, it suggests that it is in an uptrend, signaling bullish momentum. Conversely, if the price falls below the SAR dots, it indicates that a downtrend or bearish reversal may be underway.
Therefore, XDC’s Parabolic SAR setup reflects the bullish sentiment towards it among market participants, suggesting more gains in the near term.
XDC Parabolic SAR. Source: TradingView
Furthermore, the rise in XDC’s On-Balance-Volume (OBV) confirms the growing demand for the altcoin. At press time, this momentum indicator, which measures the buying and selling pressure of an asset, is trending upwards at 217.06 million.
When an asset's OBV rises like this, it suggests strong buying interest, often signaling the continuation of an uptrend.
XDC OBV. Fonte: TradingView
However, many XDC futures traders are defying the bullish trend, as evidenced by the token’s negative funding rate. Currently at -0.06, this reflects strong demand for short positions.
The funding rate is a periodic rate exchanged between traders in perpetual futures markets to balance long and short positions, based on the difference between the contract price and the spot price. A negative funding rate means that short positions are paying longs, indicating bearish sentiment and that traders expect the asset's price to fall.
XDC Funding Rate. Fonte: Coinglass
Short squeeze looms as bullish momentum builds
If the bullish momentum continues, XDC short sellers may face a squeeze. In such a scenario, its price could hit $0.10, triggering the liquidation of some short positions.
XDC Price Analysis. Source: TradingView
However, if the buying pressure weakens, the XDC price could retreat to $0.07, offering profits to short traders.
The post XDC Defies Trend, Surges 7% Amid Short Selling Pressure appeared first on BeInCrypto.