Onyxcoin (XCN) has faced a significant decline this week, dropping by 14% due to its inability to surpass a crucial resistance level. Despite trying to exceed $0.0214, the altcoin was met with resistance, resulting in more losses for traders.
This marks the end of a six-week period of positive market momentum, with a bearish sentiment emerging, hinting at possible further decreases in value.
The overall momentum for Onyxcoin has shifted from bullish to bearish. The MACD indicator, which had been displaying optimistic momentum, recently displayed a bearish crossover, indicating the conclusion of the six-week bullish run for XCN. This development suggests that Onyxcoin's value may continue to decline, with the likelihood of testing the next significant support level in the near future.
Traders are experiencing notable losses as the bearish trend takes hold. Onyxcoin traders are currently facing $2 million in long liquidations, equivalent to 16% of the total open interest of $12 million. Though this amount may appear modest in a broader market sense, these liquidations could exacerbate the bearish sentiment surrounding XCN.
As more traders encounter liquidation, the negative sentiment could intensify, hindering Onyxcoin's recovery. The domino effect of these liquidations could trigger additional selling pressure, exacerbating the decline.
Onyxcoin has declined by around 14% this week, now priced at $0.0183 after failing to break the $0.0214 resistance for the second time this month, leading to a drop below the local resistance of $0.0187. This failure to surpass key resistance levels has exposed the coin to further downside risks, making it susceptible to more drops.
The main support level for Onyxcoin stands at $0.0165, which could be tested if the price continues to fall. A breach below $0.0165 might result in more long liquidations, potentially pushing Onyxcoin's value even lower. If stability is not achieved above this critical level, additional losses seem likely.
Yet, reclaiming $0.0187 as support could indicate a possible recovery for XCN. Bouncing off this support level could pave the way for retesting the $0.0214 resistance, potentially invalidating the bearish outlook.