Onyxcoin has attempted a recovery after facing consistent selling pressure throughout most of the month. Although the recent bounce helped XCN reclaim short-term levels and triggered a technical breakout attempt, underlying indicators remain weak, raising significant doubts about the Onyxcoin price and its ability to sustain current gains in the upcoming sessions.
In this fragile market environment, sentiment remains shaky as long-term holders begin to aggressively reduce their exposure to the asset. According to Glassnode data, HODLers have sold roughly 25 million XCN over the past 10 days, an activity that typically signals declining conviction among investors who anchor price stability during volatile periods in the market.
Furthermore, macro momentum reinforces a cautious outlook due to persistent capital outflows recorded on the network. The Chaikin Money Flow (CMF) indicator has dropped below the zero line, signaling that selling volume outweighs buying pressure, leaving this cryptocurrency in a vulnerable technical position before any potential reversal or further downward movement.
Sustained outflows and weak liquidity jeopardize XCN’s upward move
From a technical standpoint, the Onyxcoin price is attempting to break out of a descending wedge pattern formed over the last three weeks. While this setup usually carries bullish implications with a potential 28% rise toward $0.0088, the lack of capital inflows suggests the move lacks the necessary strength to confirm a successful breakout above key levels.
Moreover, the asset is currently trading near $0.0072, still below the crucial $0.0077 resistance level. Therefore, if money flow does not return to the platform soon, the current breakout is likely to fail, potentially pushing the Onyxcoin price toward lower support levels at $0.0062 or even the $0.0054 mark if bearish pressure continues to mount.
Can Onyxcoin successfully flip its current resistance into support before February?
On the other hand, a bullish scenario could still play out if market conditions improve significantly during the next few days. Sustaining the breakout requires flipping $0.0077 into reliable support, which would signal a renewed buyer commitment to the project’s ecosystem. Under stronger participation, the asset could advance toward $0.0088 and potentially target the $0.0100 range soon.
Ultimately, XCN’s immediate future depends on its ability to attract institutional liquidity amidst a broader risk-off environment. As long as money flow indicators remain in negative territory, investors should remain cautious, as the technical structure suggests this recovery attempt could be a bull trap before deeper corrections occur in the open market.
