Onyxcoin [XCN] has recorded an increase of 16% in the past 24 hours, with a 12% rise in daily trading volume as well.
During the recent market downtrend, Onyxcoin faced a 30% decline, hitting its lowest point at $0.018. However, in the following 30 hours, it managed to bounce back by a substantial 68% from these lows.
This level of volatility presents an enticing opportunity for traders, and the significant bullish response following the lows may indicate a strong underlying foundation. What strategies are the XCN bulls contemplating?
Is Onyxcoin Offering a Favorable Entry Point?
In the latter part of January, Onyxcoin witnessed a notable surge in both prices and on-chain activities.
During this rally, a series of Fibonacci retracement levels were established. Subsequent to the recent price dip, the 78.6% level at $0.0194 was revisited.
The robust rebound of nearly 70% thereafter was a positive signal for investors, demonstrating strong bullish sentiment. The successful test and subsequent rise from the 78.6% level were encouraging.
The $0.0282 fair value gap emerged as the subsequent short-term support area that the bulls are expected to safeguard.
The H4 RSI indicator reentered the bullish territory above the 50 marks, indicating a potential upward trend. Additionally, the OBV started displaying an upward trajectory, signifying heightened buying interest.
Despite these positive developments, the market structure remained bearish, with the price facing resistance at $0.0347, which marked the latest lower high that needed to be surpassed for a bullish shift in the trend.
The 7-day MVRV showed a slight negativity, whereas the 30-day MVRV exhibited a strong positive reading of 51.39%.
Consequently, most short-term holders were in a profitable position, potentially prompting them to secure gains, thereby adding to the selling pressure.
Utilizing the Network Value to Transaction (NVT) metric involves dividing the XCN market cap by its daily circulation. A relatively elevated ratio indicates that the network is relatively expensive concerning the value transacted within it.
While this was the scenario in December and early January, increased network activity has alleviated concerns of the token being overvalued at the current moment, as indicated by NVT.
Disclaimer: The content provided does not constitute financial, investment, or trading advice of any kind; it solely represents the writer’s perspective.