Onyxcoin (XCN) has taken the spotlight in the cryptocurrency world by delivering a staggering 116% price gain this year. Rising from an extended period of underperformance, the token has caught the attention of traders, driving its value close to the critical $0.0100 mark. However, with short-term holders dominating the market, is this rally sustainable?
What Is Driving XCN’s Impressive Rally?
The surge in XCN price can largely be attributed to renewed speculative interest and aggressive accumulation by investors. According to on-chain data, short-term holders who acquired XCN within the past one to three months now control 37% of the circulating supply—a significant leap from 19% earlier this month. This sharp increase signals that newer participants are driving the momentum.
Interestingly, this influx of demand has stabilized the token after its prolonged downturn. Younger holders are known for amplifying price movements through concentrated buying during momentum-driven phases, but this may also make XCN more vulnerable to sudden shifts in sentiment.
Profit-Taking Risks Loom Over XCN
While the rally is impressive, there’s a looming risk associated with rising profits among short-term holders. The MVRV (Market Value to Realized Value) Long/Short Difference is currently at -64.9%, indicating that short-term capital dominates the market. Historically, such scenarios often lead to increased selling pressure as holders seek to lock in gains before the market cools off.
The profitable cohort includes those who purchased XCN during late 2025 and early 2026. With the gains they’ve already secured, there’s an increased likelihood of them cashing out, which could destabilize the current bullish momentum. If the token fails to maintain its key $0.0088 support level, the price could tumble further to $0.0077 or even $0.0065.
Will The Bulls Return?
Despite the risks, there’s still a chance that XCN’s rally could extend if short-term holders choose to hold rather than sell. A decisive push above $0.0095 could signal renewed bullish strength and pave the way to surpass the $0.0100 psychological resistance level. Breaking this barrier could open opportunities for more gains, potentially targeting the $0.0108 range.
For those interested in the broader crypto market, staying updated on trends and volatility is crucial. Tools like the Ledger Nano X Wallet can help investors securely manage their tokens during volatile market phases.
Conclusion
XCN’s recent performance showcases its potential as a speculative asset, but the growing presence of short-term holders with unrealized profits adds to its near-term risks. Whether the token continues to climb or faces a pullback will largely depend on traders’ sentiment in the coming days. As always, remember to conduct thorough research before making any investment decisions.
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