XDC’s Strong Uptrend May be Paused

XDC has been in a strong uptrend lately; however, it may take a break before going up further.

What is XDC?

What is XDC? The XDC Network is an optimized, EVM-compatible blockchain platform that uses a delegated proof-of-stake consensus mechanism for fast transaction times and low gas fees.

Validators must stake XDC and upload KYC documentation to participate in block generation. The platform also plans to incorporate a novel judiciary branch to enhance the security of its consensus mechanism.

Current Situation

XDC Network (XDC) has been on a roll lately, posting impressive gains over the past few months. In just 18 days, it has risen by 50%, and since the rally started in December 2022, it has surged by over 100%.

However, the crypto asset is currently approaching its next resistance level of $0.045.

What Now?

If XDC breaks above $0.045, it will continue to head toward its next resistance level of $0.070. However, this will likely only happen if the overall market and Bitcoin become bullish.

One reliable technical indicator for predicting the end of XDC's rally is the Relative Strength Index (RSI).

Currently, the RSI is overbought and has been for some time. This suggests that a correction may be on the horizon before XDC pushes higher.

Based on the RSI and the current market, the most likely outcome is that we will see a short-term correction before XDC continues its upward trajectory.

Bottom Line: XDC Network has been an exciting player in the crypto market, posting impressive gains in recent months.

While it is currently approaching its next resistance level of $0.045, if it breaks above this level, it could continue to rise toward $0.070. However, investors should keep an eye on the RSI, as it has effectively predicted the end of XDC's rallies. A correction may be expected in the short term before XDC resumes its upward trend.