XDC Defies Market Trends, Rises 7% Despite Short Pressure

The XDC Network token has outperformed the broader market, rising 7% in the past 24 hours and becoming the top gainer among major cryptocurrencies. With strong bullish momentum, XDC seems poised for further gains in the near term. This analysis explores recent trends and potential price targets for the token.

XDC Sees Increased Demand

XDC is currently trading above the dotted lines of its Parabolic Stop and Reverse (SAR) indicator, which tracks price trends and indicates potential reversals. When the price is above the SAR dots, it signals an uptrend and bullish momentum. This setup suggests that the market sentiment for XDC is positive, indicating the potential for more gains in the short term.

Additionally, XDC’s On-Balance-Volume (OBV) is rising, confirming the increased demand for the token. The OBV, which measures buying and selling pressure, is on an upward trend at 217.06 million, indicating strong buying interest and suggesting the uptrend may continue.

However, XDC’s negative funding rate of -0.06 indicates strong demand for short positions, with many futures traders betting against the uptrend. A negative funding rate means short traders are paying long traders, suggesting bearish sentiment and expectations of price decline.

XDC Price Prediction: Short Squeeze Possible

If the bullish momentum persists, short sellers may face a squeeze, driving XDC’s price to $0.10, potentially liquidating some short positions. However, if buying pressure weakens, the price could fall back to $0.07, benefiting short traders.