XDC XINFIN Descending Broadening Wedge Bullish Reversal IncomingXDC has been in this long correction consolidation as have most of the other cryptos in this bear market. It seems like XDC has found a bottom or is finding a bottom. This descending broadening wedge pattern that formed after a major bullish run is a great pattern and will result in a nice upside move to start XDC's next run up to possibly $3 on this next run. The descending broadening wedge breakout will result in a measured move of at least $.27 cents. XDC has been gaining alot of popularity lately in the crypto community and I think XDC is going to jump up into the top 10 or 20 very soon. Its fundamentals are amazing as well. Dont sleep on this one guys this is probably the easiest 100x there is in my mind. I show in the chart that XDC top will be around December 2023, I dont know if that is exactly when it will happen, it could be faster or it could be into 2024. Regardless XDC is about to melt faces and Ive been saying that for a long time. I will leave statistics below about how this descending broadening wedge will/should play out, its a direct copy and paste from CENTRALCHARTS.
A descending broadening wedge is bullish chart pattern (said to be a reversal pattern). It is formed by two diverging bullish lines.
A descending broadening wedge is confirmed/valid if it has good oscillation between the two upward lines . The upper line is the resistance line; the lower line is the support line.
Each of these lines must have been touched at least twice to validate the pattern.
NB: a line is said to be "valid" if the price line touches the support or resistance at least 3 times.
This implies that the descending broadening wedge pattern is considered valid if the price touches the support line at least 3 times and the resistance line twice (or the support line at least twice and the resistance line 3 times).
A descending broadening wedge does not mark the exhaustion of the selling current, but the buyers’ ambition to take control. The divergence of the two lines in the same direction (increase in price magnitude) informs us that the price continues to fall with movements that are increasingly low in magnitude. The sellers manage to make the price rebound on the resistance line but lose control after the formation of a new lowest point. The highest point reached during the first correction on the descending broadening wedge’s resistance line forms the resistance. A second wave of decline then occurs of more magnitude, signalling the sellers' loss of control after a new lowest point. A third wave forms afterwards but the sellers lose control again after the formation of new lowest points.
During the formation of a descending broadening wedge, volumes do not behave in any particular way but they increase strongly when the support line breaks.
FORMATION OF A DESCENDING BROADENING WEDGE AFTER A PEAK
This type of pattern appears during the correction in a bullish movement, it is a bullish continuation pattern. Resumption of the bullish movement after correction.
The break in the resistance line definitively validates the pattern.
The price objective is given by plotting the wedge’s maximum height onto the breaking point
NB: pullbacks are harmful to the pattern’s performance.
Statistics of the descending broadening wedge after a bullish movement
- In 79% of cases, the exit is bullish.
- In 23% of cases, a descending broadening wedge occurs in a consolidation movement.
- In 81% of cases, the pattern's price objective is achieved when the resistance line is broken.
- In 40% of cases, the price makes a pullback in support on the descending broadening wedge’s resistance line.
