Onyxcoin [XCN] has experienced a 16% increase in value over the last 24 hours, with a 12% rise in its daily trading volume.
Amidst a recent widespread sell-off in the market, Onyxcoin had slumped by 30%, hitting a low of $0.018. However, it has since rebounded impressively by 68% within a span of 30 hours.
This considerable volatility is highly attractive to traders, and the strong bullish response following the price dip could indicate a solid foundation. So, what strategies are XCN bulls preparing to unveil?
Is Now a Favorable Time to Invest in Onyxcoin?
In the latter part of January, Onyxcoin witnessed a substantial surge in both prices and on-chain activities.
During this rally, a series of Fibonacci retracement levels were analyzed for future price movements. The recent drop in prices led to a retest of the 78.6% Fibonacci level, sitting at $0.0194.
The subsequent robust 70% rebound signaled positivity for investors, showcasing a strong bullish sentiment. The successful test and bounce at the 78.6% level indicated a healthy market response.
Looking ahead, the $0.0282 fair value gap stands as the next immediate support level that the bulls are likely to protect.
Positive signs were evident as the H4 RSI climbed above the neutral 50 mark, hinting at an upward trend. Additionally, the OBV showed an upwards trend, reflecting increased buying activities.
Notwithstanding, the market structure still appeared bearish, with $0.0347 as the most recent lower high that needs to be surpassed for a transition to a bullish setup.
The 7-day MVRV indicator demonstrated a slightly negative reading, while the 30-day MVRV displayed a strong positive figure at 51.39%.
Consequently, most short-term XCN holders were sitting in a profitable position, potentially leading to profit-taking actions and adding to the selling pressure.
The Network Value to Transaction (NVT) metric divides Onyxcoin’s market cap by its daily circulation. When the NVT ratio is relatively high, it suggests the network is costly compared to the transmitted value.
Although this was true in December and early January, the increased network activity at present indicated that the token’s valuation was not inflated as per the latest NVT insights.
Disclaimer: The opinions expressed in this presentation do not constitute financial, investment, trading, or similar advice but solely represent the perspective of the author.