Onyxcoin (XCN) has been facing a persistent downtrend for over a month, despite a surge in activity from whales.
Although whales have been accumulating XCN in substantial amounts, the lack of strong bullish signals in the overall market has hindered any significant price turnaround. The altcoin continues to grapple with downward pressure.
Whales holding between 10 million and 100 million XCN have been actively acquiring the token. In the last three days alone, these investors have bought over 368 million XCN, totaling $5.6 million. This trend indicates that whale investors are optimistic about the potential recovery of Onyxcoin's price, strategically accumulating at lower levels to capitalize on future profits.
Even with the broader market sentiment leaning bearish, the significant purchases by whales reflect their belief that the altcoin's value will rise once market sentiment shifts. However, general investor sentiment appears mixed at this point.
Onyxcoin's network growth, a key measure of new addresses and transactions, is currently at a six-week low. This decline suggests a waning interest from new users and investors, indicating that Onyxcoin may be losing ground in the wider crypto market.
The stagnant network growth raises concerns as it implies a lack of enthusiasm from new entrants to buy or use the token presently, potentially signaling challenges for Onyxcoin in maintaining momentum and turning the downtrend around.
As of now, Onyxcoin is priced at $0.0152, unable to break free from its month-long trendline. Despite several attempts to break out, XCN remains beneath this line. The resistance at $0.0150 continues to act as a strong barrier, hindering significant price advancements.
The recent activity from whales could play a crucial role in determining whether Onyxcoin can reverse its current trajectory. A successful breach of the trend line, particularly if $0.0182 transitions into a support level, may drive the altcoin towards $0.0237, marking a robust recovery if investor confidence strengthens.
Conversely, a lack of new investor interest and declining retail participation may cause Onyxcoin to drop below the $0.0150 support level, potentially leading XCN towards $0.0127 and negating the bullish outlook.
The future trajectory of Onyxcoin heavily relies on its ability to attract broader market support and capital, crucial factors for the altcoin's growth and stability.