eCash [XEC] Recently, has been on bullish market. Altcoins are showing signs that they have a dominant buy-side after increasing bullish interest.
The altcoin’s recent gains of over 14% was evidenced in its last 24 hour performance. The altcoin has seen a cumulative gain of more than 40% over the past 30 days. Hence, the really important question right now is this — Can eCash can sustain this run?
The rally structure for eCash conceals a wall of resistance ahead
On a broader scale, the structure of XEC showed a bullish pattern that was defined by a horizontal support line and ascending resistance level.
This pattern would usually convey the feeling of a bullish market. At press time, however, an examination of the patterns revealed that pressure could be coming soon for investors.
In reality, XEC surged towards a large resistance zone that could weigh heavily on any rally and impede further growth. In the short term, the price could still push forward before slipping into a downtrend—a temporary formation—as the momentum driving the rally fades.
The momentum is still strong enough to keep the price on a higher level, as the volume has increased by 309%, to $31.4 Million.
XEC capital flows and momentum flash early warnings
This pressure could be persistent. XEC MACD (moving average convergence divergence) is a measure of whether buyers or sellers are dominating the market. It tracks this through its MACD (blue) line, its signal line, as well as the histogram.
The two lines have been trending downwards towards negative territory for a couple of days now. It is common for a drop to that area to be indicative of an increase in selling pressure.
Money Flow Index, which measures capital flowing into and out an asset (i.e. the money flow index), also indicated that investors could be now pulling back. The capital flow into XEC was also sharply reduced.
To sustain a rally in a bullish mood, it is necessary to have demand. This demand comes usually as fresh money. This time, the same thing is missing.
The odds that buyers will become exhausted are high if both capital and momentum is on the downside.
Risk grows, yet XEC is bullish.
Finally, sentiment has remained bullish around XEC so far. This would be the reading that one expects in a market on the rise.
The interest measured by social sharing has increased significantly in the last few days. In the community sentiment reading, which shows how investors are leaning, it was 4,18/10. It was possible that a bullish confidence is still building.
XEC posts are also on the rise, with approximately 904 being posted across the entire market. The altcoin is attracting more traders to the market, but also putting them in danger.
Final summary
- XEC is up 40% within the last 30 day period. On the larger chart, a resistance line horizontal and a support ascending form a clearly bullish structure.
- The decline in capital flows hinted that demand was fading, increasing the likelihood of buyers becoming exhausted.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: ambcrypto.com
