XDC, the first layer blockchain native cryptocurrency, rose to a 39-month high on January 15 after breaking a key resistance level fueled by a new partnership.

XDC Network (XDC) rose 22% to $0.1231 over the past day, becoming the biggest gainer among the top 100 crypto assets, per data from CoinGecko. Its market value reached more than $1.7 billion at the time of writing the article.

The rise in altcoin prices was accompanied by an increase in trading volume and open interest in the futures market. It is worth noting that the asset’s trading volume increased by 44% over the past day, exceeding $84 million, while its open interest doubled during the same time frame to $4.62 million.

XDC rallied after the project Announce Its partnership is with account mining platform PillarX, which will integrate XDC into its ecosystem. This will enable platform users to integrate XDC into their Web3 activities while taking advantage of advanced features such as improved transaction efficiency and ease of use.

The partnership will also strengthen XDC Network's foothold in... RWA encoding market By enhancing its accessibility and usefulness for encoding real-world assets through seamless Web3 integration. RWA tokenization allows users to convert physical assets, such as real estate, into digital tokens that can be traded on blockchain networks.

Previously, XDC Network a partner With Archax, a digital securities exchange and custodian regulated by the Financial Conduct Authority, to promote the adoption of tokenized real assets. As such, the project holds the second-largest position in the RWA market, behind only Mantra, which has a market capitalization of more than $3.6 billion.

Another factor that has led to renewed investor confidence in the project is the growth of the XDC Network DeFi ecosystem over the past months. According to As for DefiLlama, its total value locked in the DeFi ecosystem has risen from $8.5 million at the beginning of November to an all-time high of $31.23 million, as seen on January 15.

Moreover, the altcoin rally was partially supported Bitcoin marches back towards $100,000 With the broader cryptocurrency market rebounding after cooler-than-expected inflation data from the Bureau of Labor Statistics. Fear and greed in cryptocurrencies inDirect implementation It has also turned back to 'greedy' from neutral levels seen last week, with a reading of 70 at press time, indicating risk-on sentiment in the market.

XDC price action

On the 1-day XDC/USDT chart, the Moving Average Convergence Divergence (MACD) indicator indicates that the rally may continue with both the MACD and the signal line heading higher. This is confirmed by the Supertrend indicator, as the Supertrend line moves below the line to support the bullish outlook.

The altcoin is also trading above its 50-day and 200-day moving averages, meaning buying pressure remains high with bulls targeting higher prices, likely aiming for a new all-time high of $0.19, around 39% higher than Current price. With a value of $0.1131.

However, XDC's rally may face a pullback before continuing higher as its price approaches the upper border of the Bollinger Band and the RSI approaches overbought levels.

Another potential driver that could hinder a bullish continuation is the increased selling activity that retail traders are observing. Over the past day, XDC traders transferred $3.06 million worth of tokens to exchanges, while $2.57 million was withdrawn according to CoinGlass data.

Increasing amounts of cryptocurrencies being sent to exchanges are usually a sign that investors may be preparing to sell their holdings to either gain profits or shift funds into different assets.