Onyxcoin (XCN) has experienced a sharp decline, shedding more than half of its value since reaching an all-time high (ATH) in January. With persistent outflows and a negative funding rate, the altcoin continues to struggle, raising concerns about further losses.

Onyxcoin (XCN) has been in a steady downtrend since hitting its all-time high of $0.049 on January 26, 2025. As of the latest data, the altcoin is trading at just $0.015, a loss of 57% from its ATH. This decline comes amid mounting sell-offs, weak demand, and a negative sentiment in the market. Despite these challenges, there’s still a possibility of a price bounce if new demand enters the market.

Heavy Sell Pressure on Onyxcoin

Over the past month, Onyxcoin has faced consistent outflows from its spot markets, indicating significant selling pressure. According to Coinglass, February saw only four days of inflows, totaling a modest $3.5 million, compared to $15 million in outflows. This imbalance shows that investors are increasingly selling off their holdings, likely due to a lack of new demand for the altcoin.

In March, outflows from the spot markets have continued, reaching $6.45 million so far. Such sustained selling activity signals that many investors are taking profits or exiting their positions, which is contributing to the ongoing downward pressure on the price of XCN. With no fresh buying interest, Onyxcoin’s price could struggle to reverse its downtrend.

Negative Funding Rate Reflects Bearish Market Sentiment

Another key indicator of the bearish sentiment surrounding Onyxcoin is its negative funding rate. The funding rate is a periodic fee exchanged between long and short traders in perpetual futures contracts. Since the beginning of the year, Onyxcoin has seen a predominantly negative funding rate. This means that more traders are betting on a decline in price, as short positions outnumber long ones.

A negative funding rate can further reinforce bearish sentiment in the market, as it suggests that traders are expecting the price to continue falling. This situation also leads to additional selling pressure, as traders who are shorting the asset profit when its price declines. The prolonged negative funding rate highlights the lack of confidence in XCN’s short-term prospects.

XCN’s Bearish Price Pattern and Potential for Further Decline

Looking at Onyxcoin’s price chart, the altcoin remains trapped within a descending parallel channel. This technical pattern indicates a sustained downtrend, with the price fluctuating between two downward-sloping trendlines. As long as XCN stays within this bearish channel, the sellers appear to be in control.

If XCN breaks below the lower trendline of the channel, it could signal further downside. In this case, the price could fall to as low as $0.0075. This would mark a significant additional loss for the altcoin, extending its ongoing decline from its January highs.

Potential for a Rebound

Although the outlook for Onyxcoin remains largely bearish, there is still a possibility of a short-term rebound. If demand for XCN increases, it could break out of its downward channel and push the price higher. In a more optimistic scenario, XCN could rise to around $0.022. However, this would require a significant shift in market conditions, and there’s no guarantee that such a move will happen without a substantial change in investor sentiment.

Conclusion

Onyxcoin (XCN) has experienced a steep 57% drop from its January all-time high, and the altcoin is still facing heavy sell pressure. The combination of significant outflows, a negative funding rate, and a bearish price pattern suggests that further declines may be likely in the near term. However, a surge in demand could provide an opportunity for the price to recover. Investors should carefully monitor the market for any signs of a reversal before making any decisions.