XDC Network has partnered with Credefi Finance to allow staking token holders. This move locks tokens from circulation and reduces supply: Does this staking mechanism increase XDC prices? Let’s look into it.
Credefi Partnership turns XDC into a yielding asset
Credefi Finance, a decentralized lending platform, has integrated with the XDC network (XDC) to launch a staking pool. This allows the XDC holder to lock the token and earn a return. Unlike speculative rewards, Credefi staking is tied to a Real World Asset (RWA) lending system that links blockchain users with real lending opportunities other than Crypto.
Partnerships go beyond staking. Credefi has confirmed that USD Coin (USDC) is live on XDC and is accepted as collateral for peer-to-peer lending. This means that users can borrow and lend stubcoins within the XDC ecosystem. Increases network utilities and enhances connectivity with distributed finance (DEFI).
In the case of XDC, the effect arises from the supply. When the tokens are staked, they leave the open market. Few tokens are available for transactions, reducing supply. If demand is stable or rises, a decline in supply can push prices up. This is why staking is seen as a factor that helps tokens gain value over time.
The XDC chart shows the important battle between the bull and the bear
On September 30th, XDC traded for around $0.073, slightly increasing the day of more than one day. Prices have moved within a triangle pattern that will be decreasing from August. Currently it sits near a key support zone of $0.072.
This level has been held several times in recent weeks. If it breaks, the XDC price is $0.068 and may slide towards the next support. On the other hand, if the buyer is able to push beyond the $0.078-$0.080 zone, it indicates the onset of a potential inversion. This range is important as it matches the 20- and 50-day exponential moving averages that traders often use to find trends.
His relative strength index (RSI) is about 40 years old and is below neutral level 50. This indicates that the sellers still have control, but the market has not yet been sold. As RSI approaches 30, sales pressure may be lost and means that it is opening the door to bounce.
Can staking trigger a breakout?
The deployment of staking via Credefi occurs when XDC is testing its main support levels. By reducing circulation supply, staking can ease sales pressure and prepare the ground for meetings. However, the technology chart shows that the Bulls still need to regain resistance at $0.080 before they can begin a clear upward trend.
If XDC prices outweigh support and prevent a higher collapse, October could bring about stronger benefits driven by both supply cuts and fresh demand. However, if support fails, the token may first drop before the staking effect starts to appear in the price action.
The XDC network is at the turning point. With new staking opportunities and technical signals converging, weeks ahead could potentially shape the next big move in tokens. Does staking through Credefi tilt the balance in favor of the bull or will the resistance be stronger?
Don’t miss out on the next update and see how XDC’s price story unfolds.