XDC Network [XDC] has posted a double-digit gain of above 10% in the past 24 hours, driven by building spot foundation that preceded the surge. According to reports from AMBCrypto, the rally was not spontaneous, with four days of buying activity laying the groundwork for the price increase. CoinGlass data showed that $363,830 was spent acquiring XDC between the 21st and 24th of May, reflecting a period where investors were steadily accumulating the asset likely viewing it as undervalued at those levels.
While profit-taking has since begun in the spot market, perpetual traders have stepped in to add capital, with Open Interest (OI) climbing 9.97% to $4.8 million as of writing. As reported by AMBCrypto, this activity has added further momentum to the ongoing accumulation that has benefited XDC over the past 24 hours. However, indicators now show early signs of bulls scaling back, with the asset approaching a critical edge as market dynamics shift.
Clear pressure is building against XDC as the asset approaches a territory that historically signals buyer exhaustion. According to AMBCrypto analysis, XDC was on the verge of hitting the upper Bollinger Band, the overvalued zone, which notably coincides with a supply zone on the chart. The Accumulation/Distribution indicator compounded this reading as the A/D declined and then flattened, sitting at approximately -2.05 billion in accumulated volume, indicating investors and traders are scaling back their positions.
The liquidation heatmap reveals limited liquidity on the chart overall, with clusters that do exist sitting predominantly below price rather than above it. As reported by AMBCrypto, liquidity clusters act as attraction points on the chart, drawing price toward them over time, and the current placement of clusters below price increases the probability of a move lower. Notably, perpetual contracts remain tilted in favor of bulls, with the Funding Rate holding slightly positive at 0.0050%, though a shift in the Funding Rate turning negative would add to the exit pressure.
