Onyxcoin (XCN) has been on a downtrend for the past three weeks, undoing much of its January gains. Despite potential for a bullish breakout, the altcoin is facing challenges in its recovery journey.

The decline in new addresses on Onyxcoin's network has reached a monthly low, indicating a lack of interest from new investors. This diminishing network growth is hindering XCN's ability to attract fresh capital and build momentum, making it more susceptible to further downside risks.

The Chaikin Money Flow (CMF) also reflects a weakening sentiment among XCN holders, with funds flowing out of the asset. This trend could delay or impede a full recovery for Onyxcoin if market conditions do not improve.

While the price of XCN is breaking out of a descending wedge pattern, signaling a potential 66% rally post-breakout, achieving this target price of $0.0398 depends on overcoming current market challenges. Securing $0.0237 as support is crucial for a potential rise towards $0.0358, but stronger investor confidence and positive market signals are needed for this scenario to materialize.

Given the current market sentiment, XCN may remain around the $0.0237 level, with a risk of dropping to $0.0184 if support is lost. This scenario could prolong the altcoin's downtrend and hinder immediate recovery prospects.