XDC jumps 11% as volume surges – Can it break $0.115 next?

Key Takeaway

XDC Network [XDC] reclaimed $0.10 briefly on rising volume and spot accumulation, but derivatives traders remain bearish, and profit-taking is rising.

XDC Network [XDC] briefly climbed 11.58% to $0.104 after holding $0.08 support, before retreating to $0.099 at press time.

The price surge was backed by a 48.99% spike in volume to $82.19 million, hinting at stronger capital inflows and renewed on-chain activity.

Buyers return, but will they hold?

After taking a step back as XDC retraced to a local low of $0.079, buyers returned with strength.

According to Coinalyze, XDC Network recorded three consecutive days of positive Buy-Sell Delta, thus boosting price recovery.

On the 19th of July, the altcoin saw 13.06 million in Buy Volume compared to 8.41 million tokens in Sell Volume. A similar pattern emerged on the 30th of July, with Buy Volume reaching 376k while Sell Volume reached 358k.

As a result, the altcoin saw two consecutive days of positive deltas of 4.66 million and 17k, respectively. Typically, sustained positive market delta signals indicate increased accumulation. 

Futures market bets against the rally

Surprisingly, despite a price uptick, derivatives participants have remained bearish.

According to CoinGlass, Open Interest (OI) jumped 13.84% to $11.69 million while Derivatives Volume surged 116.59% to $13.79 million, as of writing. 

Such an increase in volume and OI reflects growing capital influx in the futures markets and their corresponding user participation. 

However, the Long/Short Ratio stood at 0.937, well below 1, indicating most traders are still leaning short.

In short, derivative traders aren’t buying the rally.

Is THIS flipping positive a red flag?

As expected, after XDC recovered from its recent slump, holders rushed into the market to cash out. 

According to CoinGlass, XDC has recorded a positive Spot Netflow for five consecutive days. At the time of writing, Netflow was $16.5K, a significant drop from $1.1 million the previous day. 

Typically, when Netflow turns positive, it signals higher Exchange Inflow relative to Outflows, a clear sign of aggressive selling. 

Momentum indicators send mixed messages

According to AMBCrypto’s analysis, XDC Network rallied as buyers made a strong comeback in the market. 

For that reason, the altcoin’s Stochastic RSI made a bullish crossover, rising from 15 to 32 at press time. However, its Relative Strength Index retraced to 68 from 70, signalling weakening buyer momentum. 

When momentum indicators are set like these, they indicate increased pressure between buyers and sellers. To continue the upward movement, buyers must reclaim the narrative and boost RSI to make a bullish move. 

If that happens, XDC could reclaim $0.10 and attempt $0.115 next. But if sell pressure mounts, price may revisit the $0.08 support.