Onyxcoin (XCN) has found itself deep in a bearish trend, dropping over 35% in the last 30 days, and showing little signs of recovery in the near term. Once valued at a market cap of $1.4 billion at the end of January, Onyxcoin has seen its value plummet to $572 million, highlighting the increased selling pressure and weak buying interest. This downturn is reflected in key technical indicators, which suggest that Onyxcoin is at a pivotal point in its price action.

RSI Shows Weakening Buying Momentum

Onyxcoin’s Relative Strength Index (RSI) has fallen to 41.8, indicating a shift from a previous period of increasing buying momentum. The RSI, a tool that measures price momentum on a scale of 0 to 100, is now signaling that the coin is experiencing a loss of upward buying interest. Earlier this week, the RSI briefly surged to 55.4, but the subsequent drop back to 41.8 suggests that sellers are once again dominating the market.

An RSI below 50 signals a weakening bullish trend, and as the RSI edges closer to the 30 level, Onyxcoin may face further downside pressure. On the other hand, if the RSI can stabilize above 40, it could indicate consolidation, potentially leading to a price rebound. However, for now, the declining RSI presents a bearish outlook for the cryptocurrency.

ADX Confirms Strong Bearish Trend

The Average Directional Index (ADX), a metric used to assess the strength of a market trend, is currently at 25.2 for XCN. This increase in the ADX value, which was 13.9 just days ago, confirms that the bearish trend is strengthening. An ADX reading above 25 indicates a strong trend, and in this case, the trend is decidedly downward. This suggests that the selling pressure is likely to persist in the short term.

If the ADX continues to climb, it will reinforce the bearish sentiment in the market, potentially leading to further declines in Onyxcoin’s price. Conversely, a decrease in the ADX would signal a weakening of the current trend, providing a possible opportunity for stabilization or reversal.

Critical Support and Resistance Levels

Onyxcoin’s price is now approaching critical support at $0.014, a level that could play a significant role in determining its next move. If the price falls below this threshold, the market could see a further increase in selling activity, pushing the price to potentially dip below the $0.010 mark.

On the other hand, if Onyxcoin manages to reverse the trend and reclaim some upward momentum, it could target the next key resistance at $0.0229. A breakthrough above this level could pave the way for a move toward $0.0339, with some analysts speculating that Onyxcoin could eventually reach as high as $0.049 if a full recovery is achieved. This would depend on a significant shift in market sentiment, which has so far been dominated by the bearish trend.

Conclusion: A Crucial Time for Onyxcoin

Onyxcoin is currently navigating a challenging market environment with its price down significantly over the past month. While the key indicators such as RSI and ADX suggest that the bearish trend remains intact, the critical support at $0.014 could be a pivotal point for future price action. If the price fails to hold above this level, XCN could continue its downward trajectory.

However, if Onyxcoin finds support and breaks through resistance at $0.0229, a recovery could be in store. Investors and traders alike will need to closely monitor these key levels to assess the future direction of Onyxcoin.