XPL Breaks Descending Trendline, but Support Is Crucial

The XPL price is showing an interesting technical pattern according to one analyst. The price has broken through a descending trendline and is now consolidating just above a support zone. As long as that support holds, the analyst says the outlook remains positive. A new upward move could then follow. However, losing the support would completely undo the technical picture.

In short:

• XPL has broken through a descending trendline and is moving sideways above a support zone.
• The analyst sees a positive structure as long as the support holds.
• If the support zone is lost, the upward scenario fully falls away.

Trendline break after months of downward pressure

On the two-day chart, XPL can be seen to have been under pressure for some time. From the peak around $0.18, the price declined in a continuous series of lower highs, forming a clear descending trendline. The current price is around $86, after a temporary peak towards $0.12 earlier in September.

The break of that descending trendline is seen by the analyst as a first positive signal. The price then consolidated above the support zone, which is shown as a pink area on the chart.

Support zone determines the further course

The analyst states that the structure remains positive as long as XPL closes above the support zone. In that case, a new upward move could get underway. However, the arrow on the chart also points to the downside scenario: if the support gives way, the positive picture is invalidated and the price could fall further towards lower levels such as $65 or below.

It is a two-sided scenario in which the support zone will be decisive in the coming days and weeks. The analyst makes no statement about a specific price target in the event of an upward break.