XAI price makes a 34% recovery after retesting its prior resistance for support. More upside expected.
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Key Takeaways
XAI broke above an accumulation zone, signaling bullish momentum.
Horizontal support of $0.27 was interacted with as a retest of previous resistance
Upside potential with targets including $0.43, $0.53, and $0.69 following recovery.
XAI has recently shown bullish momentum, breaking out of a prolonged downtrend. Following a surge to $0.43, the token is now consolidating near key support levels, setting the stage for its next move.
Previous horizontal resistance was successfully retested for support, resulting in a 34% increase. If the correction is over, XAI could develop a new significant uptrend.
The XAI daily chart shows the token breaking out of a long-term downtrend, marked by a descending resistance line that started in early 2024.
After consolidating between $0.16 and $0.26, XAI surged to $0.43. This breakout aligns with growing market interest after a prolonged accumulation phase.
XAIUSD correction after the first uptrend is seen | Credit: Nikola Lazic/TradingView
Following its rally, XAI retraced to support near $0.27, aligning with a critical level of previous resistance turned support.
The Relative Strength Index (RSI) cooled from overbought levels, suggesting a potential consolidation phase. Maintaining support above $0.27 would confirm bullish strength and pave the way for further gains.
If support holds, XAI could retest its local high at $0.43. However, a breakdown below $0.27 might lead to further downside toward $0.20, where the next major support lies.
This consolidation phase will be critical in determining the token’s next direction.
Key Observations
Breakout Confirmation: XAI broke above a long-term descending resistance line, signaling a bullish shift.
RSI Cooling: RSI shows reduced momentum, supporting potential consolidation before the next move.
Next Major Support: A breakdown below $0.27 could target the $0.20 support zone.
XAI Price Prediction
The XAI hourly chart shows a completed impulsive wave structure, peaking near $0.43 before entering a corrective ABC pattern.
Wave (a) retraced to $0.32, followed by a brief wave (b) recovery near $0.36. Wave (c) further tested support at $0.26, marking the 0.618 Fibonacci retracement level, indicating strong buyer interest.
XAIUSD ABC correction might have ended | Credit: Nikola Lazic/TradingView
Currently, XAI is attempting a recovery, climbing back to $0.35, aligned with the 0.236 Fibonacci retracement of the recent corrective wave.
The RSI indicates recovering momentum from oversold conditions, suggesting that the correction might have been completed. If XAI maintains its upward momentum, the price could test the previous high of $0.43.
A failure to maintain support at $0.32 could lead to further downside, with the next critical support at $0.26.
However, if bullish momentum strengthens, XAI could target $0.53 and $0.69 Fibonacci extensions, aligning with wave (3) and wave (5) projections.
Key Levels to Watch
Support Levels:
$0.32: Immediate support aligning with the 0.382 Fibonacci retracement.
$0.26: Critical support at the 0.618 Fibonacci retracement level.
$0.16: Major support if bearish momentum prevails.
Resistance Levels:
$0.36: Immediate resistance aligning with the 0.236 Fibonacci retracement.
$0.43: Key resistance at the previous high and breakout level.
$0.53 and $0.69: Wave (3) and (5) Fibonacci extension targets.
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.
