🔥 Key Takeaways
- Onyxcoin (XCN) has rallied more than 70% over the past month but corrected nearly 40% from its January highs.
- Despite the pullback, the broader structure remains intact, suggesting a potential breakout.
- Technical analysis indicates a significant drop in sell pressure, down by about 90%, setting the stage for a bullish move.
- Charts show key resistance levels and support zones that traders should watch for confirmation of the breakout.
Another Onyxcoin Breakout In Play As Sell Pressure Drops 90%? Charts Show the Path
Onyxcoin (XCN) has been on a roller coaster ride over the past few weeks, with a significant rally followed by a sharp correction. After gaining more than 70% over the past month, the cryptocurrency experienced a nearly 40% pullback from its January highs, erasing most of its weekly gains and sliding about 7% in the past 24 hours. However, despite the recent pullback, the broader structure of Onyxcoin remains intact, and technical indicators suggest that another breakout may be on the horizon.
Technical Analysis: A Closer Look at the Charts
The most striking aspect of Onyxcoin’s recent price action is the dramatic drop in sell pressure. According to volume and on-chain data, sell pressure has decreased by about 90%, indicating that the bears are losing their grip on the market. This decline in sell pressure is a strong bullish signal, as it suggests that the market is becoming more balanced and that buyers are starting to regain control.
On the daily chart, Onyxcoin is currently trading above its 50-day moving average, which is a key support level. The 50-day MA has been a reliable support line over the past few months, and a sustained break above this level could signal the start of a new bullish trend. Additionally, the relative strength index (RSI) is showing signs of a bullish divergence, with the price making lower lows while the RSI is making higher lows. This divergence is often a precursor to a strong price move to the upside.
The key resistance levels to watch are the $0.05 and $0.06 price levels. If Onyxcoin can break above these levels, it could trigger a wave of buying pressure and push the price higher. Conversely, if the price fails to break through these resistance levels, it could lead to further consolidation or even a retest of the recent lows.
What Makes This Breakout Different?
The current setup for Onyxcoin is unique because of the significant drop in sell pressure. This reduction in selling activity is often a sign that the market is preparing for a change in direction. In the past, Onyxcoin has struggled with high levels of sell pressure, which have prevented it from sustaining its gains. However, the current market conditions are different, and the technical indicators suggest that the bulls are gaining strength.
Another factor to consider is the broader market sentiment. The cryptocurrency market as a whole has been showing signs of recovery, with many altcoins experiencing strong gains. This positive market sentiment could provide a tailwind for Onyxcoin, making it easier for the bulls to push the price higher.
Conclusion
Onyxcoin (XCN) is setting up for a potential breakout as sell pressure drops by 90%. The charts show a bullish divergence in the RSI and a strong support level at the 50-day moving average. Traders should keep an eye on the key resistance levels at $0.05 and $0.06, as a break above these levels could signal the start of a new bullish trend. While the recent pullback has been significant, the broader structure remains intact, and the technical indicators suggest that the bulls are regaining control. Stay tuned to see if Onyxcoin can break out and continue its upward trajectory.
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