XEC price makes a 17% decline since the recent high in December, hinting at the ongoing correction developing.
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Key Takeaways
XEC has completed wave (iii) at $0.000060, initiating correction.
A critical support zone at $0.000042 could define the correction’s bottom.
Bullish continuation potential with wave (v) target at $0.000068.
The eCash (XEC) price chart reflects a significant breakout from an extended consolidation phase, climbing to a recent high of $0.000060.
Following this rally, the current 17% pullback marks the beginning of wave (iv) in the Elliott Wave sequence, signaling a cooling phase while maintaining the broader bullish structure.
The daily eCash (XEC) chart highlights a breakout from a prolonged consolidation phase, followed by an impulsive wave structure that reached a recent high near $0.000060.
This surge confirms the completion of wave (iii) in the ongoing Elliott Wave sequence, while the current 17% pullback suggests the beginning of wave (iv) retracement.
The Relative Strength Index (RSI) has decreased from overbought levels, signaling a cooling phase, yet the broader bullish structure remains intact.
XECUSD pullback signals uptrend completion | Credit: Nikola Lazic/TradingView
The retracement is approaching key Fibonacci levels that could serve as strong support areas for wave (iv). The 0.236 Fib level at $0.000042 aligns with the prior resistance zone, now likely to be retested for support.
Should this level hold, XEC could see renewed bullish momentum in wave (v), targeting the next resistance at $0.000068 and beyond.
Key Observations
Wave (iii) Completion: eCash (XEC) has completed wave (iii) at $0.000060, signaling the start of wave (iv) retracement.
Critical Support Zone: The 0.235 Fibonacci level at $0.000042 is pivotal for the current correction.
Bullish Continuation Potential: If support holds, wave (v) could target $0.000068, marking the next bullish leg in the Elliott Wave structure.
XEC Price Prediction
The hourly chart suggests that XEC completed wave (iii) and is entering a corrective phase as part of wave (iv).
We saw a drop to $0.0000486 as a breakout below the ascending trendline and likely the first sub-wave of the developing ABC correction.
XECUSD ABC correction likely developing | Credit: Nikola Lazic/TradingView
The primary support to watch is around 0.000042, aligning with the 0.236 Fibonacci level and prior price consolidation zones. If buyers defend this level, it could signal the start of wave (v).
A short-term bounce is the B wave, which should develop as a retest of the broken ascending trendline. However, a rejection and a lower high will signal another deeper downturn to our previously outlined Fib target at $0.000042.
Failure to hold above this level could question the bullish outlook as that would mean the price entered the territory of wave 1, which cannot happen in wave 4 according to the rules of the Elliott Wave Theory.
Key Levels To Watch
Support Levels
$0.00005231 (0.382 Fib): Immediate support stabilizes the current pullback.
$0.00004162 (0.236 Fib): Major support aligning with the lower boundary of the potential wave (iv) correction.
$0.00002970: Strong historical support that aligns with prior consolidation levels.
Resistance Levels
$0.00006044 (0.5 Fib): Immediate resistance if wave B attempts a recovery.
$0.00006857 (0.618 Fib): Key level for continuing the broader bullish wave (v).
$0.00008015: Extended wave (v) target and potential new local high.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis.
Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information.
