Onyxcoin (XCN) experienced a remarkable 22x increase from January 1st to the 26th before undergoing a noticeable decline. Despite the retreat, the overall long-term projection remained optimistic.
This period of rapid growth may allow the Onyxcoin market to stabilize before embarking on its next upward movement.
Is Investing in XCN at $0.02 Recommended?
An analysis of the rally from $0.0111 to $0.0499 involved the application of Fibonacci retracement levels, revealing that the $0.0194 mark, representing the 78.6% level, continued to act as a strong support zone.
This surge was highlighted by a phase of short-term consolidation slightly above the $0.01 mark before witnessing a substantial surge in the latter part of January.
Despite a recent downward trend in Onyxcoin’s value over the past three weeks, crucial retracement levels have been successfully defended. While the daily market conditions appear bearish, there is a prevalent uptrend on longer timeframes, suggesting that the ongoing price adjustment may be a temporary setback.
While this positive outlook may reassure investors, caution is advised as the Chaikin Money Flow (CMF) and Moving Average Convergence Divergence (MACD) indicators are less favorable. The CMF registered -0.25, indicating significant selling pressure, while the MACD demonstrated signs of weakening bullish momentum.
A potential crossover below the zero line on the MACD could signify a stronger bearish momentum prevailing in the daily trading scenario.
An examination of the 4-hour chart indicated a potential cessation of the downward correction for XCN. Notably, a consolidation range has formed between $0.02 and $0.0255.
The market structure on this timeframe remains bearish since no new significant highs or lows have been established over the past fourteen days. Despite a brief uptick above +0.05 on the CMF, the subsequent decline indicates ongoing bearish sentiment. The MACD portrayed a neutral stance, signaling a balanced momentum as the price tested the intermediate support level.
An evaluation of the liquidation data identified a prominent concentration of long leverage liquidations within the $0.02-$0.021 range, coinciding with the lower bounds of the established range.
Considering the prevailing CMF readings and feeble momentum, it is probable that XCN will revisit the $0.02 level before resuming its upward trajectory, primarily due to the significant liquidity pool in that range.
Disclaimer: The views expressed in this analysis do not constitute financial, investment, or trading advice and represent the author’s personal opinion.