Onyxcoin has attempted a rebound after persistent selling pressure for most of the month. The recent increase helped XCN regain short-term levels and triggered a technical breakout attempt.
Despite this development, the underlying indicators remain weak. Several on-chain and liquidity metrics suggest that the breakout may struggle to hold, raising doubts about further increases.
Onyxcoin vendor
The market sentiment surrounding Onyxcoin remains fragile as long-term investors begin to reduce their exposure. HODLer Net Position Change shows a steady sell-off in recent days. Long-term investors have sold approximately 25 million XCN in the last 10 days. This activity indicates declining confidence among investors who typically help secure price stability.
When long-term investors transition from accumulation to selling, recoveries often lose strength. These market participants typically only sell if confidence wanes. Their selling increases supply in the market and limits upward momentum. The continued distribution suggests skepticism towards the current breakout attempt rather than renewed optimism.
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The overall momentum reinforces a cautious assessment. The Chaikin Money Flow indicator shows continued outflows over the past week. CMF has fallen below the zero line, indicating that sales volume exceeds buying pressure. This shift shows that capital is leaving Onyxcoin rather than rotating into it.
Negative CMF readings often precede failed breakouts. Without capital inflows, price increases lack support and become vulnerable to retracements. Rising outflows reduce liquidity and weaken demand. As long as CMF remains negative, the probability of a sustained breakout is very low.
From a technical standpoint, XCN is attempting to break out of a descending wedge that has developed over the past three weeks. This pattern often has bullish implications when confirmed. The measurement for this recovery points to a potential increase of 28% targeting $0.0088. Such setups often attract short-term traders seeking momentum.
But the price structure remains fragile. XCN is currently trading close to $0.0072 – below the critical $0.0077 resistance level. Due to weakened sentiment and continued outflows, the risk of a decline remains high. If it fails to regain resistance, the altcoin could fall towards $0.0062. A deeper retracement to $0.0054 would extend the overall bearish trend.
A bullish scenario is still possible if market conditions improve. To sustain the breakout, $0.0077 must be turned into solid support. This will signal renewed buyer interest. With increased participation, XCN could move towards $0.0088. If the price continues up to $0.0100, it will dismiss the bearish viewpoint and confirm the potential for a trend reversal.