Onyxcoin Under Pressure: Will XCN Break Out of Its Downturn Soon?

Onyxcoin (XCN) has encountered formidable challenges in recent times, remaining entrenched in a prolonged downtrend. Despite various attempts to turn the tide, the altcoin’s price continues to experience significant bearish pressure.

Long-term holders (LTHs) are capitalizing on their investments, yet the prevailing market sentiment remains ambiguous, potentially hindering any substantial recovery for XCN.

Investor Sentiment Towards Onyxcoin

The current price dynamics of Onyxcoin are closely tied to Bitcoin (BTC), which displays a strong correlation at 0.84. This correlation suggests that XCN might mirror Bitcoin's movements.

However, this linkage carries inherent risks, especially since Bitcoin itself has been struggling below the crucial $85,000 threshold. If Bitcoin falters further, it could drag Onyxcoin down with it, stifling any possibility of a rally for the altcoin.

Nonetheless, Onyxcoin's MVRV Long/Short difference currently reflects a positive 18%. This figure indicates that long-term holders are in profit, often signifying a more stable environment for the asset. Their reluctance to sell during unfavorable market conditions assists in providing some support for the cryptocurrency.

Onyxcoin's price patterns are also affected by overarching macroeconomic trends. Should market conditions worsen, or if Bitcoin's price stagnates, Onyxcoin may find itself trapped in a downward trend. However, an uptick in the broader market could shift investor sentiment, which is crucial for the altcoin's recovery.

Potential Price Decline for XCN

In the last 24 hours, Onyxcoin's price has plummeted 15%, extending its four-week-long downward trajectory. Following a brief rally of 27% over the weekend, the altcoin has failed to maintain upward momentum, and its previous attempt to break resistance has been invalidated. Currently, XCN is struggling below the significant resistance level of $0.0182, with support found at $0.0150.

If the price remains consolidated at these levels, the outlook appears bleak. Without significant market backing or a clear change in sentiment, XCN may continue to decline, potentially dropping below $0.0150, and facing a test around $0.0127.

Despite these challenges, an improvement in broader market conditions could allow XCN to reclaim the $0.0182 level as support. This shift could propel the altcoin towards $0.0237 and help invalidate the prevailing bearish sentiment.