ECash defies the red crypto day — but will the XEC rally last?

image from e.cash

YEREVAN (CoinChapter.com) – ECash (XEC), the rebranded version of Bitcoin Cash ABC (BCHA), gained 9% $0.00005673 in the previous 24 hours, even as its rivals bled.

However, the ECash bulls may not have enough time to reap the rewards, as the token forms a Bear Flag setup.

ECash (XEC) daily chart

The Bear Flag typically occurs after a sharp downward move. It features a period of consolidation between two parallel trendlines that takes the price slightly higher before continuing on a bearish path. The formation originated on May 11, after a nearly 40% plunge.

ECash (XEC) daily chart featuring a Bear Flag. Source: TradingView.com

Moreover, the setup’s target drop equals the decline preceding the Flag, i.e., the flagpole. In the case of XEC, the target price stood at approximately $0.00002662, or over 50% lower than the current value. Additionally, the trading volumes on the daily chart have declined on June 7, after the previous day’s soar.

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In detail, weakening trading volumes signal growing passivity among investors. Typically, it indicates insufficient weight behind the uptrend and hints at a looming rally halt or a decline. However, the reasons behind the upside move are noteworthy.

What prompted XEC’s jump?

ECash token’s upside move came from an upgrade on crypto exchange KuCoin. The platform launched XEC deposit and withdrawal services, as it announced early on Tuesday.

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The platform announced another upgrade on June 7. ECahs’s wallet Electrum ABC released its 5.2.1 version, with several bug fixes and an “update to the BIP71 headers.”

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Moreover, the ECash token’s bullish price action caught the community’s attention. According to the crypto data collector Lunar Crush, XEC social engagement spiked 3,950% above the average weekly hits yesterday, arranging nearly 3.5 million mentions.