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Momentum indicators support this breakout. The Relative Strength Index (RSI) is above 70, and the Moving Average Convergence/Divergence (MACD) is positive.
Since the indicators are increasing and have not generated any bearish divergence, they suggest the trend is bullish and a breakout is likely.
Bullish XPL Pattern
A closer look at the movement since Oct. 2 reveals that the XPL price created a triple bottom pattern in October (green icons).
The triple bottom is a bullish pattern, and the fact that it transpires after a downward movement makes it likely that it will lead to a bullish trend reversal.
The XPL price confirmed the pattern with a breakout above $1. However, an upward movement that spans the entire pattern’s height will only take the XPL price to the $1.16 horizontal resistance area.
Hence, the XPL price prediction remains unclear, as the breakout from a diagonal resistance suggests the correction is over, but the wave count and triple bottom pattern indicate the opposite.
Unclear Trend Ahead
Overall, XPL’s price action presents a mixed picture. On one hand, the breakout shows strength, while the wave count and pattern target indicate the opposite.
Whether this move marks the start of an actual bullish reversal or a corrective rally will depend on how the price reacts to the $1.16 resistance level.
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.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
