In the ever-volatile world of cryptocurrencies, Chia Network’s native token, XCH, has been a subject of intense scrutiny. While the long-term outlook remains bullish with a strong support level at $25.00, the short-term narrative tells a different story. The token has been grappling with bearish trends, struggling to break free from the clutches of the 50-day EMA. Despite multiple attempts to reverse the downtrend, XCH has been unable to sustain above key resistance levels. As of today, Chia is trading at $27.82, experiencing an intraday decline of 1.94%.
The market is rife with speculation, but what’s undeniable is that XCH is currently in an oversold state. This presents a potential opportunity for a reversal, especially as the MACD curve shows signs of upward movement and the RSI hovers at 37, indicating a possible shift from oversold territory. With the crypto giants BTC and ETH showing signs of recovery, could this be the catalyst for XCH’s resurgence? The stage is set for a potential turnaround, and investors are keenly watching for signals that could indicate the beginning of a new chapter for Chia.
According to CoinMarketCap, Chia Network’s 24-hour trading volume to market cap ratio stands at 1.12, and its pair with Bitcoin (XCH/BTC) is trading at 0.0001051 with an intraday decline of 2.87%
Buyers tried multiple times to break the 50-day EMA to reverse the short-term trend. But the attempts failed and the prices continued to decline.
At the beginning of August, XCH price slipped below the $32.00 support. It triggered the negative sentiment and invited further decline. On a higher time frame, it formed a double-top pattern which raised concern for the long-term investors.
The last time XCH price took support near $25.00 it showed a sharp bounce. So, investors are expecting that a similar pattern may be repeated, as Steve Anderson, an Australian crypto enthusiast, reported on TheCoinRepublic.
Will Chia Price Recover From Multi-Year Low?
Chia price prediction suggests that the price is near its demand zone so a relief rally may trigger anytime. It has not performed well in the past few months and traded with a bearish bias.
The short-term pullback rallies are facing difficulty in holding the higher levels. It shows that the short sellers are still active.
However, the crypto leaders, BTC and ETH prices are recovering which might improve the sentiment of investors. If the recovery continues in BTC and ETH prices, then the downfall in the XCH crypto may take a halt.
The analysis suggests that XCH is oversold so the possibility of taking U-turns remains high.
XCH Price Forming a Doji Candle Near Support
XCH price forming a Doji candle near to crucial support. It indicates indecisiveness and bears losing momentum. If the prices begin to consolidate for sometime near $25.00 then it might be a signs of the base formation.
The MACD curve is reversing upward and may generate a positive crossover. It indicates mild bullishness. The RSI at 37 also reversed upward from the oversold territory. If the recovery continues it may reach neutral territory in the coming weeks.
Conclusion
Chia price prediction is bullish and suggests a rise in the coming months. XCH price is near to the demand zone so the downside risk is low. The analysis suggests that the buyers in XCH crypto are active near $25.00 and the possibility of upside reversal is high.
Technical levels
- Resistance levels: $31.00 and $34.00
- Support levels: $26.00 and $25.00
