XYO Price Prediction: Wallet Profits Surge by 20%, Is a Breakout Imminent?

• XYO has gained 17% in a week, resulting in a 20% increase in wallet profitability.
• The MVRV ratio suggests that XYO is undervalued, which gives it room for more growth.

XYOat press time, saw a 67% increase in trading volume within 24 hours CoinMarketCap. During that time, the price rose 6.9%, taking its seven-day gain to 17%.

The recent gains have seen XYO’s market cap rise to $123 million from $74 million at the start of the month. However, a deep dive into technical indicators and on-chain data shows mixed signals around the token.

XYO forms an asymmetric triangle pattern

XYO had formed an asymmetric triangle pattern on its four-hour chart, suggesting that the price could break out higher or experience a trend reversal depending on buying or selling pressure.

At press time, XYO was testing resistance at the upper boundary of this triangle, but higher volumes are needed to support the uptrend.

Meanwhile, the Awesome Oscillator (AO) shows that bullish momentum is gaining strength, as shown in the green histogram bars that are increasing in size. If the rally continues, XYO could target $0.0114.

Source: Tradingview

However, several bearish signals are evident as Chaikin Money Flow (CMF) has a negative reading of -0.11, suggesting that sellers have been more active than buyers.

This could lead to a trend reversal and a drop below the lower boundary of the asymmetric triangle to the support level at $0.007.

Wallet profits increase by 20%

The recent XYO gains have seen wallets that are in the money (in profits) increase by 20% in a month, from 36% to 56%. On the other hand, the proportion of wallets suffering losses has decreased from 58% to 37%.

Source: IntoTheBlock

An increase in wallet profitability is positive for a token as it can improve market sentiment. However, it can also be pessimistic as traders try to take profits. Therefore, it is crucial to monitor spikes in selling activity that could trigger a downturn.

The MVRV ratio indicates possible undervaluation

The market value to realized value (MVRV) ratio for XYO shows that the token may be undervalued. At press time, this figure stood at 0.51, with no significant changes in the last seven days.

Source: IntoTheBlock

A low MVRV ratio represents an accumulation zone for new buyers. However, it also shows that investors are sitting on unrealized losses. Therefore, price increases could lead to profit-taking, which in turn could trigger a downtrend.