XDC Network posts RWA progress but on-chain activity lags — traders warned of deeper pullback
XDC Network (XDC) showed mixed signals: the token slipped 0.76% in 24 hours but gained 6.13% weekly, outperforming Bitcoin’s 12% weekly loss. On-chain metrics point to weak user activity — daily active users reportedly fell 84% from 2021 to about 45k — and spot trading volumes are cooling, though cumulative taker flow has moved from sell-dominant toward neutral over three weeks. Price was trading near $0.037 with analysts warning the bearish trend could retest the long-held $0.022 support (previously respected since June 2022), possibly leading to consolidation under $0.03 before any sustained recovery. Off-chain fundamentals include a successful hard fork on 30 Jan to strengthen infrastructure for real-world asset (RWA) tokenization, and a Brazil-focused partnership track: Liqi Digital Assets and XDC reported $100M in tokenized RWAs on XDC with a 2026 target of $500M, while a VERT Capital deal aims to tokenize $1B in debt and receivables. Traders should weigh easing selling pressure against low on-chain demand; a price bottom may still be weeks or months away.
Neutral
The news mixes constructive fundamental developments with weak on-chain demand, producing a neutral short-to-medium term outlook. Bullish factors: successful hard fork improving infrastructure for RWA issuance, tangible progress with partners (Liqi, VERT Capital) and $100M already tokenized with higher issuance targets — these support long-term institutional use-case and potential RWA-driven flows. Bearish factors: dramatic decline in daily active users (84% since 2021), cooling spot volumes, and a prevailing bearish price structure that could retest $0.022 support and spend weeks/months consolidating below $0.03. For traders: short-term reaction risk is to the downside (potential deeper pullback and range formation); easing taker-sell pressure suggests selling may be slowing, which reduces crash risk but doesn’t confirm a bottom. Historically, chains with low active use but strong partnerships often see delayed price appreciation until on-chain utility or issuance materially increases. Expect elevated volatility around RWA issuance milestones or announced institutional deals; position sizing and stop management are advised until on-chain activity and volume confirm renewed demand.