Onyxcoin (XCN) has been under intense selling pressure over the past month, with its price plummeting by more than 30%. This steep decline has raised concerns among investors, as technical indicators reflect a growing bearish sentiment. With the Relative Strength Index (RSI) nearing oversold territory and the Average Directional Index (ADX) signaling a strengthening downtrend, Onyxcoin faces potential further losses unless there’s a reversal in momentum.

RSI Approaches Oversold Territory

Onyxcoin’s RSI has sharply dropped to 31.63, signaling that the asset is nearing oversold conditions. RSI is a momentum indicator that measures the speed and change of price movements, with values typically ranging from 0 to 100. When the RSI is above 70, it indicates that an asset is overbought, while readings below 30 suggest oversold conditions.

Currently, with XCN’s RSI just above the oversold threshold, it’s signaling that the selling pressure may be nearing its peak. While this suggests the potential for a rebound, it’s far from certain. The RSI has remained below the neutral 50 level for the past 12 consecutive days, indicating that the bearish trend has been dominant during this period. Should the RSI dip below 30, it could indicate panic selling or market capitulation, which might lead to even more significant losses for Onyxcoin.

However, a reversal in momentum could occur if the RSI starts to climb above 40, signaling a reduction in selling pressure. This would be an early sign that buyers might be regaining control, potentially fueling a trend reversal.

ADX Indicates Strengthening Downtrend

Another critical indicator that reflects the deepening bearish sentiment is the ADX, which measures the strength of a trend, regardless of its direction. Onyxcoin’s ADX has surged to 24.17, up from 12.86 just a day earlier. This sharp rise signals that the downtrend is gaining strength, and the market’s bearish momentum may continue.

The ADX operates on a scale from 0 to 100, with values below 20 suggesting a weak or non-existent trend, while readings above 25 indicate a strong, well-established trend. With the ADX now at 24.17, Onyxcoin is nearing the critical threshold for confirming a strong downtrend. If the ADX continues to rise above 25, it would signal that the bearish trend is gaining more momentum, and further downside could be expected.

Price Faces Support at $0.0083

Currently, Onyxcoin is testing critical support at $0.0083. If this level fails to hold, the price could potentially drop even further. The next significant support zone lies around $0.0051, which would mark the lowest price for Onyxcoin since mid-January. If Onyxcoin breaks through this support, further declines could follow, deepening the current bearish trend.

EMA Lines Reflect Bearish Sentiment

The Exponential Moving Average (EMA) lines for Onyxcoin also support the bearish outlook. The EMAs are currently in a bearish formation, indicating that the downtrend could persist in the short term. If the selling pressure continues, it might lead to further testing of the $0.0083 support, and a breakdown here could open the door to even lower price levels.

Potential for Rebound

Despite the current bearish outlook, Onyxcoin isn’t entirely out of the game. If buyer support picks up, a reversal could still occur. A potential rebound above $0.0083 could set Onyxcoin on a path to test resistance at $0.014. A successful breakout above this resistance could indicate a return to bullish sentiment and open the door for further price targets, such as $0.020 and even $0.026.

In conclusion, Onyxcoin faces a challenging period ahead as its RSI nears oversold levels and the ADX signals a strengthening downtrend. Unless there’s a shift in market sentiment, XCN may continue to face downward pressure. However, a strong reversal could still occur, with key support levels providing potential entry points for buyers looking to capitalize on a recovery.