For our next Market Update segment, we recently ran a community vote in our Telegram channel as to which coin should be reviewed by our Technical Analysis writer Pentoshi. The result of this was XDB or DigitalBits.
While XDB hasn’t been listed long enough to develop a long term macro view of it, we can still look at the trend itself to see what has happened, it just means that there is less information to go off and is slightly less reliable.
However there is no doubt that it did double bottom, and that bulls have been stepping in which has drive volume to new highs off the impulse. It also shows that there is conviction and momentum behind the move with good market participation. As of now the two most likely outcomes have been drawn on the charts.
The first being that price breaks through the previous all time high which was also the listing price roughly. In this instance it is normal that price would break through, then retest to confirm as support where people who flipped short will then look to flip long. Those that were bears should become bulls on the retest.
The other possibility is that it is rejected at the the previous highs in which bulls would need to defend the higher low which also was a resistance that was flipped to support.
If XDB does break past the all time highs it would enter a phase of price discovery. Which typically will be a fib extension before running into resistance. But discovery itself is unpredictable as the market decides it’s value at the time.
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Pentoshi is a macro trend trader who specializes in price action technical analysis utilizing high time frame pivots. A full time Crypto trader who is now directing focus on trading education.
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