Can Onyxcoin Maintain Its 28% Breakout? Unpacking the Metrics
Onyxcoin (XCN) has recently caught the attention of crypto enthusiasts as it attempted a breakout after weeks of consistent selling pressure. Despite this upward movement, several on-chain and liquidity metrics suggest that sustaining the breakout may be challenging. Let’s dive into what investors need to know.
Long-Term Holders are Losing Confidence
One of the primary reasons for skepticism around Onyxcoin’s breakout is the dwindling confidence of long-term holders. The HODLer Net Position Change metric indicates steady distribution over the past ten days, with approximately 25 million XCN sold by long-term investors. This behavior signals weakening conviction among those who typically serve as price anchors for the token.
When long-term holders shift from accumulation to selling, it can create excess supply in the market and limit upward momentum. This ongoing distribution suggests that the current price rally lacks strong foundational support.
Negative Chaikin Money Flow (CMF): A Cause for Concern
Macro momentum metrics reinforce the cautious outlook for Onyxcoin. The Chaikin Money Flow (CMF), an indicator that tracks the balance between buying and selling pressure, has turned negative. Sustained outflows over the past week highlight increased selling volume, which could limit liquidity and reduce demand for XCN.
A persistent negative CMF typically precedes failed breakout attempts. Without inflows to match or exceed outflows, Onyxcoin’s price may struggle to hold its recent gains.
Technical Analysis: Breakout or Breakdown?
From a technical perspective, Onyxcoin is attempting to break out of a descending wedge pattern formed over the past three weeks. While this pattern is often seen as bullish, the outcome relies heavily on overcoming critical resistance levels.
Currently trading near $0.0072, Onyxcoin needs to reclaim the $0.0077 resistance level and turn it into solid support. If successful, this could trigger a rally toward the next target at $0.0088, representing a 28% potential increase. However, failure to sustain this breakout could push XCN prices back to $0.0062 or even as low as $0.0054, further extending the bearish trend.
Is There Still Hope for a Bullish Scenario?
Despite the challenges, a bullish scenario is still on the table for Onyxcoin. To confirm a trend reversal, the market must see renewed buyer participation. A sustained move above $0.0077 with consistent inflows could propel XCN beyond $0.0088 and towards $0.0100, invalidating the bearish outlook.
For those considering investing in Onyxcoin, staying updated on market metrics and conducting thorough research is crucial. Tools like the Ledger Nano X (available here) can help you securely store your crypto holdings while navigating the volatile market.
Final Thoughts
While Onyxcoin’s 28% breakout looks promising on the surface, underlying metrics paint a more cautious picture. Long-term holders reducing their positions, coupled with negative Chaikin Money Flow, highlight the risks associated with the current rally. For investors, the key resistance level at $0.0077 will determine whether this breakout can transform into a full-fledged trend reversal or if further downside lies ahead.
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