Deep Dive
1. Post-Listing Profit-Taking (Bearish Impact)
Overview: XL1 surged 88% after its 5 November BitMart listing but has since retraced 25%. The token’s 24h volume ($5.4M) fell 3.75%, signaling reduced liquidity and trader exit strategies.
What this means: Early buyers likely sold into thin liquidity post-listing, exacerbated by the broader “Bitcoin Season” market (BTC dominance at 58.69%). Altcoins like XL1 often underperform in such conditions as capital rotates to safer assets.
What to look out for: Sustained volume below $5M/day could deepen losses.
2. Staking Incentive Expiry (Mixed Impact)
Overview: A 75M XL1 reward pool via Galxe campaigns ended on 26 November, coinciding with the start of the current downtrend. Similarly, Gate.io’s 500% APY staking product expired on 24 September, releasing 330M XL1.
What this means: While staking initially reduced circulating supply, unlocked tokens entering markets create sell pressure. XL1’s circulating supply (5.74B) has grown 12% since September, diluting value.
What to look out for: Monitoring vesting schedules for team/advisory tokens (25.3% of supply) could preempt further dilution.
3. Technical Breakdown (Neutral/Bearish)
Overview: XL1 trades below its 30-day SMA ($0.000692) and faces resistance at the 23.6% Fibonacci level ($0.000757). The RSI (41.66) suggests neutral momentum, but MACD shows weak bullish divergence.
What this means: Technical traders may interpret the failure to hold $0.000667 (7-day SMA) as a bearish signal, triggering stop-loss orders.
Key level to watch: A close below $0.000627 (swing low) could accelerate selling.
Conclusion
XL1’s dip reflects profit-taking after exchange listings, token unlocks from expired incentives, and shaky technicals. While the project’s dual-token model (with XYO) offers long-term utility for data-driven blockchains, short-term headwinds dominate.
Key watch: Can XL1 stabilize above its 16 September launch price ($0.0017) amid ongoing supply unlocks?