- XYO had a bullish structure on the hourly timeframe.
- The moving averages and $0.0284 were the next support levels for buyers to defend.
XYO Network [XYO] crypto was up by 185% in 24 hours, with most of those gains arriving in a span of six hours when the bulls reversed a short-term retracement.
As things stand, bulls were dominant, and the $443 million market cap asset is likely to soar higher in the coming months.
The $0.02 level offers temporary resistance
Source: XYO/USD on TradingView
On the 18th and 19th of November, XYO experienced an 81% rally in 24 hours. Following this surge, the token saw a 26% retracement over the next couple of days but managed to consolidate around the $0.009 area. On the 2nd of December, while Bitcoin continued trading around $95k, XYO made another upward move.
To understand this movement better, two sets 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 impulse move, there was a retracement to the $0.0151 level, nearly retesting the $0.0129 level, which is the 61.8% Fibonacci retracement level. Following this, XYO gathered strength 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 drop below $0.0284 could indicate an early sign of a retracement toward $0.0217 or lower.
The On-Balance Volume (OBV) rose significantly in the past two days, showing heightened demand. Meanwhile, the moving averages and the Money Flow Index (MFI) reflected the bullish momentum of XYO.
However, there is a bearish divergence on the MFI on the 4-hour chart, which could warn of a short-term price dip.
Is the rally just starting?
Source: TOTAL3 on TradingView
The altcoin market cap has been trending strongly higher over the past month and is close to the all-time high of $1.13 trillion set in November 2021. This came after the descending channel breakout in September.
Read XYO Network’s [XYO] Price Prediction 2024-25
The rising altcoin market cap indicates an intensely bullish sentiment across the crypto market. While more gains are expected overall, not all tokens will perform equally well.
Based on the current evidence, XYO appears poised for additional gains, and investors should hold on until the higher timeframe conditions shift.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
