Its decline temporarily stpooed at the $0.85 horizontal level, increasing optimism around a possible bullish trend reversal.
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Bulls took over and caused a breakout from a diagonal resistance at the start of October.
However, the breakout was unsuccessful, since the XPL price created a lower high on Oct. 7 and resumed its decline.
Today, the XPL price broke down from the $0.85 horizontal support area and fell to a low of $0.74, declining below its listing price for the first time.
Momentum indicators show no signs of a bullish trend reversal whatsoever. The Relative Strength Index (RSI) is below 30 and the Moving Average Convergence/Divergence (MACD) is negative.
Neither has generated any bullish divergence, so the XPL price prediction for the rest of October is bearish.
Let’s look at the wave count and figure out what’s next.
XPL’s Bearish Trend
The wave count suggests the XPL trend is bearish. Firstly, the XPL price finished a five-wave decline (red) after the all-time high.
The next increase was corrective, as evidenced by the A-B-C correction (black) in the first week of October.
Then, the XPL price began another five-wave downward movement, and the bounce today is likely part of wave four.
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.
