Onyxcoin (XCN) has been making waves in the crypto market, showcasing an incredible 100% surge within a week. Investors and enthusiasts are left wondering: Can this rally sustain itself, or is it just temporary momentum?
Is the Onyxcoin (XCN) Rally Backed by Real Demand?
The recent rise in Onyxcoin’s price isn’t just a fluke triggered by leverage-driven short liquidations. Instead, significant indicators suggest that the rally is grounded in genuine demand. Indicators like On-Balance Volume (OBV) and Chaikin Money Flow (CMF) are pointing towards positive capital inflow and buyer conviction.
One crucial chart development is the exponential moving average (EMA) crossover. When the 20-day EMA moves above the 50-day EMA, it typically signals a strong upward trend. Current data indicates that Onyxcoin is on the cusp of a bullish EMA crossover, strengthening the case for sustained growth.
Volume and Capital Flow: Indications of Buyer Confidence
Volume plays a critical role in confirming whether a price move has the backing of market participants. Onyxcoin’s OBV breakout from a long-standing descending trend suggests robust buying activity. Complemented by an upward trend in the CMF, this rally appears to have solid support rather than being purely speculative.
It’s also worth noting that the balance between short and long leverage positions in XCN’s perpetual futures market further reinforces market stability. Cumulative short and long liquidations remain nearly equal, minimizing the chances of sudden sharp reversals caused by one-sided positioning.
Key Levels to Watch for Onyxcoin (XCN)
For the rally to continue, Onyxcoin must break and hold resistance at $0.0095. A successful break above this level could potentially drive the price towards $0.0110, representing a 21% upside. However, failing to maintain support at $0.0084 may lead to a rapid pullback towards $0.0074, posing a threat to the rally’s continuation.
Protect Your Investments: Consider Long-term Research
While the technical indicators for Onyxcoin currently show promise, investors should always practice caution and conduct thorough research before committing. Staying updated on market conditions and external developments influencing XCN is key to making informed decisions.
Recommended Product: Ledger Nano X for Safe Crypto Investments
For those diving into the world of cryptocurrency trading or investing, security is vital. Consider storing your Onyxcoin and other cryptos in a trusted hardware wallet like the Ledger Nano X. Designed to safeguard your digital assets, it’s a top choice among crypto enthusiasts. Ensure your portfolio remains secure while exploring growth opportunities.
Invest responsibly, and let’s see where Onyxcoin’s journey takes us next!
