More significant than the size of today’s pop was how it took out two significant distribution ranges which contained pockets of sell orders. The 156-161 range I mentioned earlier worked great for a short trade, until today.
AND of significance there are now multiple accumulation ranges formed below. The last one with a high at the 166 breakout level. 146 and 138 look particularly enticing, with a stop below 130.
The rally today can easily be retraced, such is the nature of fast moves. Contrary to what many believe, strong moves don’t have the most strength. But those ranges below should form good support.
To the upside, 251-264 is now the distribution range that needs to be broken, and hold. We can expect some selling there. But if indeed we now have institutions onboard who accumulated lower (as I have posited) they will defend against price drops.
If we get heavy selling in the 251-264 range and price unable to break through, that would indicate it was merely big traders, not long term institutional investors, who caused the moves in recent weeks/months. Technically they buy and sell the same way (and leave the same patterns) but they have different time horizons.
Personally I wouldn’t have minded for XCH to stay low (or even lower) for longer. I think we can now expect an explosion in netspace as everybody thinks the dangers are over and it’s all mooning from here. But that’s just me 