- XYO has gained by 17% in one week causing a 20% spike in wallet profitability.
- The MVRV ratio suggests that XYO is undervalued, giving it room for more growth.
As an analyst with over a decade of experience in the cryptocurrency market, I must say that the recent performance of XYO is quite intriguing. On one hand, it has shown impressive gains of 17% in just one week, causing a 20% spike in wallet profitability. This is always a good sign and suggests that there might be some positive fundamental developments that are driving this growth.
At the moment, according to CoinMarketCap, XYO has experienced a 67% surge in trades over the past day. Concurrently, its price climbed by 6.9%, which translates to a total increase of 17% over the last week.
As a crypto investor, I’ve noticed an impressive surge in the value of XYO this month, with its market capitalization climbing from $74 million at the beginning to a current $123 million. Yet, upon closer examination of technical indicators and on-chain data, the signals surrounding the token appear somewhat ambiguous.
XYO forms an asymmetrical triangle pattern
On its four-hour chart, XYO displayed an unbalanced triangle formation. This suggests that the price might surge upwards if there’s increased buying pressure, or it could potentially reverse direction based on sellers’ dominance.
Currently, XYO is facing resistance at the top of its triangular pattern, yet a larger volume of trades is necessary to sustain the upward trend.
Currently, the Awesome Oscillator (AO) indicates that the positive trend is growing more robust, as evidenced by the expanding green bars. Should this upward trend persist, it’s possible that XYO might reach a price of $0.0114.
On the other hand, it appears that there are several bearish indicators, as the Chaikin Money Flow (CMF) stands at a negative value of -0.11, implying that selling activity has been more prevalent than buying.
As a researcher, I find myself contemplating a potential shift in trends that might cause a decline, dipping us below the lower boundary of the asymmetrical triangle and stabilizing around the support level at $0.007.
Wallets in profits rise 20%
Over the past month, an increase of 20% has been observed in the number of profitable XYO wallets, rising from 36% to 56%. Conversely, the percentage of XYO wallets incurring losses has decreased from 58% to 37%.
An increase in a token’s wallet profitability often indicates a positive outlook (bullish), as it has the potential to boost market optimism. Yet, this rise can also signal a negative trend (bearish) if traders decide to cash out their profits. Thus, keeping an eye on surges in trading activity that might trigger a price decline is essential.
MVRV ratio shows possible undervaluation
Based on the Market Value to Realized Value (MVRV) ratio for XYO, it appears that the token might be underpriced. Currently, the MVRV is at 0.51 and has remained relatively stable over the past week, without any significant fluctuations.
An MVRV (Moving Average of Realized Value to Realized Capitalization Ratio) below a certain level might indicate an area where fresh purchases may occur. But remember, this low ratio also signifies that investors hold ongoing, unrealized losses. Consequently, the potential for price increases could provoke selling to secure profits, which might subsequently lead to a declining trend.
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2024-11-29 08:07