Is Onyxcoin (XCN) in for a Rebound or Further Decline?
Onyxcoin (XCN) has been on a rollercoaster ride in the past month, experiencing a significant 42% drop in its value. This rapid decline has led to the coin being classified as undervalued, making it an attractive option for traders seeking to take advantage of discounted prices.
Despite its current undervaluation, on-chain data suggests that the downward trend for Onyxcoin may not be coming to an end just yet.
Onyxcoin has recently flashed a buy signal, indicating potential opportunities for investors. BeInCrypto's analysis of XCN's Market Value to Realized Value (MVRV) ratio shows that the token is undervalued, with metrics sitting at -8.49% and -24.87% based on a 7-day and 30-day moving average, respectively.
The negative MVRV ratio indicates that the market value of XCN is lower than its realized value, signaling potential undervaluation. Historically, such negative ratios have been viewed as buy signals, but the steady decline of XCN over the past month has dampened bullish sentiment among holders.
This has resulted in a feedback loop of sell-offs, further adding downward pressure on the coin's price. The negative funding rate for XCN, currently at -0.022%, suggests a bearish sentiment prevailing in the market as more traders are betting on price declines.
Additionally, the plummeting open interest for XCN indicates weakening demand for the altcoin, falling by 14% in the past 24 hours to $11 million. A decrease in open interest suggests waning market interest and hints at a possible price decline.
Looking ahead, the Relative Strength Index (RSI) for XCN shows a falling demand for the altcoin, with the index below the 50-neutral line and trending downward at 45.55. This signifies weakening bullish momentum, with the potential for the token's price to drop to $0.011 if the trend continues.
However, a resurgence in demand could invalidate this bearish outlook, potentially driving XCN's price back up to its year-to-date high of $0.049. Stay tuned as the fate of Onyxcoin hangs in the balance.