Onyxcoin (XCN), one of the more volatile altcoins in recent weeks, has posted impressive gains—up over 10% in the past seven days and more than 3% in the last 24 hours. Its market capitalization has rebounded to around $640 million, catching the attention of traders and analysts alike. However, while price action suggests strength, technical indicators are beginning to paint a more cautious picture. A closer look reveals that Onyxcoin’s bullish momentum may be faltering, even as the token holds above key support levels.

Recent technical analysis of Onyxcoin reveals a mixed outlook. The token’s Relative Strength Index (RSI), a commonly used indicator to gauge buying and selling momentum, currently sits at 48.89. This figure places XCN firmly in the neutral zone after what has been a highly volatile period. Just five days ago, the RSI reached an overbought level of 75, suggesting a potential pullback was imminent. That pullback came swiftly, pushing the RSI down to 34.88 before the current rebound.

This recent recovery in RSI implies that selling pressure is beginning to ease, and while Onyxcoin is no longer oversold, it is also not showing strong enough momentum to indicate a renewed breakout. The neutral RSI reading offers room for the token to push higher, but only if market sentiment improves and buyers return with conviction. Without that, XCN may hover in a consolidation range.

The Average Directional Index (ADX), another vital technical tool used to measure the strength of a trend, is sending a more subdued signal. Currently at 23.64, the ADX has fallen sharply from its recent peak of 50 just a couple of days ago. This decline indicates that while the uptrend technically remains in place, the power behind that trend is weakening significantly.

In the world of technical analysis, an ADX value above 25 generally reflects a strong trend, while anything below 20 points to a market lacking direction. XCN’s current ADX reading places it in a gray area—still holding onto its upward trajectory but at risk of sliding into sideways price action if momentum doesn’t return soon. Traders should be cautious, as this weakening trend strength may lead to range-bound movement or even a pullback if support levels fail to hold.

Speaking of support, Onyxcoin continues to defend a critical price floor at around $0.018. Holding this level has been key to preserving the gains made throughout April, during which XCN soared by over 112%, ranking it among the month’s top-performing altcoins. While the support zone has held firm so far, any repeated test could increase the chances of a breakdown, particularly if bullish sentiment wanes.

Another warning sign comes from the narrowing gap between Onyxcoin’s short-term and long-term Exponential Moving Averages (EMAs). While the EMAs are still aligned in a bullish setup—with shorter-term averages remaining above the longer-term ones—the distance between them has started to shrink. This convergence typically reflects a loss of momentum and can precede a shift in trend direction if it continues.

Should the price drop below $0.018, the next significant support area lies near $0.016, which could become a target for bears. On the upside, if bulls manage to reclaim control and push prices higher, the $0.024 resistance remains the level to watch. A breakout above that level could clear the path for a rally toward $0.027, setting the stage for a potential continuation of April’s explosive gains.

For now, Onyxcoin remains at a technical crossroads. Its recent performance shows resilience, but fading momentum indicators suggest that caution is warranted. With the broader crypto market showing signs of recovery, XCN may still find renewed bullish energy. However, unless key technical levels are reclaimed with conviction, the risk of consolidation—or even a reversal—looms in the near term.