XDC Network’s long game – Should traders brace for a deeper pullback soon?

XDC Network [XDC] token shed 0.76% of its value over the last 24 hours. However, on the weekly charts, it was still up 6.13%. This compared favorably to the 12% loss Bitcoin [BTC] recorded over the past week, hinting at hidden XDC strength.

There seemed to be no clear coin-specific catalysts at work. In fact, the network has not been stellar lately. A recent AMBCrypto report even highlighted that the Layer 1 network may be one of the chains with a high market cap but low active users.

With a respectable $706 million in market cap, the chain’s daily active users plunged by 84% from 2021 to just 45k. This signaled low demand due to on-chain utility.

CryptoQuant data showed that the spot volume bubble map was in a cooling phase, signaling a decline in trading volume. It was the opposite of overheated conditions that tend to accompany market tops. However, this does not mean that an XDC bottom may be in.

Additionally, the spot taker cumulative volume delta shifted to neutral over the past three weeks, after being in a taker-sell-dominant phase since October. This could be another sign that the selling pressure might be easing.

Infrastructure upgrade and RWA issuance milestone highlight XDC’s growth

On the other hand, the network announced a successful hardfork on 30 January. The upgrade strengthens XDC’s core infrastructure, which focuses on real-world asset tokenization.

Brazilian fintech Liqi Digital Assets and XDC Network announced a strategic partnership in April 2025. Aimed at bringing RWAs, DeFi, international payments, and trade finance, they recently reached the milestone of $100 million in tokenized RWAs on the XDC network.

In 2026, they target $500 million in issuances, further reinforcing the ease of tokenization as a way to manage debt and credit.

The partnership with Brazil’s VERT Capital is a sign of how XDC Network focuses on enterprise and institutional utility and is not a retail-centric chain. This deal’s aim is to tokenize $1 billion in debt and receivables on the XDC Network.

On the price front, the XDC token was valued at $0.037. The prevailing bearish trend would likely see the $0.022-support level tested in a few weeks. This demand zone has been respected since June 2022.

A retest of $0.0227 is likely to be followed by a consolidation phase where the price could form a range below $0.03. Once such a range is established, long-term investors can look to buy and hold XDC once more.

Final Thoughts

• Ghost chain fears due to daily active addresses have been diluted by the strong RWA narrative being established around XDC Network.
• On-chain metrics revealed that selling pressure might be easing, but a price bottom could be weeks or months away.