XION crypto gains 267% after listing, but sheds half its gains: What next?
XION's Open Interest rose from $317k to a high of $6.68 million, a 21-fold increase.
Key Takeaways
Why did the XION token rally, and by how much?
It rallied nearly 270% at its peak after the Bithumb listing was announced, but retraced a good chunk of this move, and was still up by 107% from the previous day’s low.
Has the recent rally shifted the outlook bullishly?
Not yet, the $0.693 and $0.793 key resistances need to be flipped to support on the 1-day chart to change the long-term downtrend.
XION blockchain’s native token, rallied 267% within eight hours on the 26th of November. The swift rally came after the token was listed on the South Korean exchange Bithumb.
The infrastructure solution and Layer 1 project’s token only has a $151 million market cap. Compared to the top 20 crypto assets, this market cap was relatively small.
It also meant higher volatility is possible, especially if the token gets listed on other exchanges.
The token exhibited this penchant for volatility on the very same day it rallied so quickly. At the time of writing, XION’s [XION] price was at $0.693, 45.5% below the previous day’s high.
Was this a deep but healthy retracement, or is this proof that the rally was driven solely by speculative hype?
XION: Bears are not beaten yet
Though many altcoins were able to perform well from June to September, XION was not one of them. This relative weakness turned into the downtrend in recent months.
At the time of writing, the $0.8-$1 resistance zone, though tested, remained unbroken by the previous day’s rally.
The Fibonacci retracement levels showed that $0.693 and $0.793 were key resistances to breach, to flip the trend bullishly. So far, this has not occurred.
Coinalyze data showed that the XION Open Interest rose from $317k to a high of $6.68 million, a 21-fold increase. This was further evidence that the speculative hype drove the previous day’s rally.
XION bulls are likely to struggle to keep up the momentum. Therefore, unless the $0.793 level is flipped to support, a bearish outlook would be prudent.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
