Onyxcoin (XCN) has been encountering obstacles lately, as the altcoin grapples with a prolonged downtrend. Efforts to reverse this trend have been met with strong bearish pressures, impeding Onyxcoin's price from making significant strides.
While long-term holders (LTHs) are reaping profits, the overall sentiment in the market remains uncertain, potentially delaying any substantial recovery for the coin.
Investors in Onyxcoin are holding on to optimism as the coin's price movement closely aligns with Bitcoin (BTC), boasting a robust correlation of 0.84. This alignment suggests that XCN may follow in Bitcoin's footsteps.
However, this correlation also poses risks, particularly as Bitcoin faces challenges trading below the $85,000 threshold. Should Bitcoin struggle further, it might drag Onyxcoin down, hindering any potential rally for the altcoin.
Notwithstanding these challenges, the MVRV Long/Short Difference for Onyxcoin currently stands at a positive 18%, indicating that long-term holders are profiting. This typically signals a more stabilized market for the altcoin, as these holders' reluctance to sell during market dips provides some level of support.
Onyxcoin's price movements are entwined with larger market trends. Depending on how the broader market performs or whether Bitcoin's price stagnation persists, Onyxcoin may either face a downward spiral or benefit from a recovering market sentiment crucial for its price resurgence.
Despite a recent 15% decline in its price over the past 24 hours, continuing a 4-week downtrend, Onyxcoin witnessed a fleeting 27% rally over the weekend that failed to sustain upward momentum. Currently, XCN remains capped below the crucial resistance point of $0.0182, with support resting at $0.0150.
The outlook appears precarious if the price remains stagnant around these levels. Without significant market backing or a shift in sentiment, XCN's struggle might persist, bringing it below $0.0150 and possibly testing $0.0127.
However, in more favorable market conditions, Onyxcoin could surge past and reclaim $0.0182 as support. This breakthrough could propel the altcoin to $0.0237, thereby negating the bearish narrative.