Onyxcoin (XCN) has faced continued price declines despite a stabilizing broader crypto market. The cryptocurrency, once showing promise, has failed to break out of its recent downtrend, leaving investors skeptical of a recovery.
This negative momentum is reflected in the ongoing market behavior and weak investor sentiment.
Onyxcoin Investors Are Skeptical
The Chaikin Money Flow (CMF) indicator reveals that Onyxcoin has been experiencing increasing outflows over the past few weeks, with the most significant rise in outflows hitting a 7-month high. This suggests that XCN holders are becoming more cautious, pulling funds out as they lose confidence in the cryptocurrency’s short-term prospects
Despite some positive movements in the broader market, Onyxcoin has not benefitted from the trend. This investor behavior suggests that, without a significant shift in sentiment, the altcoin may continue to struggle to find upward momentum.
The Network Value to Transactions (NVT) Ratio for Onyxcoin recently hit a two-month high, signaling potential overvaluation. The NVT ratio compares network activity to transaction activity, and this increase suggests that the hype surrounding XCN is not being matched by actual transactional support. When network activity significantly outpaces transactional volume, it often precedes corrections or periods of consolidation.
This situation indicates that while Onyxcoin may be receiving attention in the market, that interest has not translated into tangible support. This lack of alignment between market enthusiasm and actual trading suggests that XCN is not currently positioned for strong growth.
XCN Price Depends On Broader Market Cues
Onyxcoin’s price is currently hovering around $0.0115, having failed to break out of its descending channel pattern. The altcoin slipped below the crucial $0.0120 support level, reinforcing its position in the downtrend. With the broader market showing little immediate recovery for XCN, a further decline appears likely.
If the downtrend persists, Onyxcoin could test the next support at $0.0100, maintaining the descending pattern. This would delay any recovery and likely prolong the bearish sentiment among investors. The lack of positive signals from key indicators suggests that XCN’s price may remain under pressure for the time being.
For the bearish outlook to be invalidated, Onyxcoin would need to reclaim $0.0120 as support and break free from its current pattern. A rise above $0.0150 could signal a recovery and lead to further gains, but until then, the altcoin remains at risk of further declines.
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