XDC has risen more than 10% in the past 24 hours, but this surge did not happen suddenly. Foreign media analysis suggests that continuous spot buying between May 21st and 24th laid the foundation for the price increase. As prices rise, the market is beginning to focus on whether this rally is nearing a short-term turning point.

Four days of spot buying drove the price up.

Data shows that approximately $363,800 worth of spot buying flowed into XDC over the past four days, reflecting continuous accumulation of funds at low prices. The article argues that this buying activity was the main starting point for this round of price increases.

Meanwhile, perpetual contract traders continued to increase their positions. Open interest rose to $4.8 million at the time of writing, a 9.97% increase from the previous day. The combination of spot accumulation and increased contract open interest further amplified XDC's upward momentum.

Prices approaching historical supply levels

However, as prices continue to rise, XDC is approaching a level historically prone to buying pressure weakening. The article notes that the current price is nearing the upper Bollinger Band, which coincides with the supply zone on the chart.

In these areas, the market often experiences weakening buying momentum and increased profit-taking. The article also mentions that the cumulative/distribution indicator has recently flattened after a decline, with cumulative trading volume around -2.05 billion, which is seen as a signal of weakening willingness to continue chasing higher prices.

Liquidity is more concentrated at the bottom.

The liquidation heatmap shows that liquidity distribution is not dense, but existing liquidity clusters are mainly located below the current price, rather than above it. The article argues that this structure typically exerts downward pressure on prices.

However, bearish pressure has not yet fully prevailed. At the time of writing, the perpetual contract funding rate remained at a slightly positive value of 0.0050%, indicating that bullish sentiment has not completely weakened.

If funding rates turn negative, it means short positions are starting to increase, which could further increase pressure to exit positions. Based on this, the article concludes that while XDC still has short-term bullish support, its overall structure indicates an increasing risk of a pullback.