Onyxcoin (XCN) has been facing a tough week, with its price plummeting by 10% amid rising bearish sentiment and waning investor interest. The altcoin’s price has struggled to maintain upward momentum, largely due to declining active addresses and a surge in short positions, signaling growing skepticism from the market.

Decline in Active Addresses Signals Diminishing Interest

Onyxcoin’s daily active addresses have sharply fallen over the past few weeks, marking a significant decline in network activity. On March 3, there were 2,673 unique addresses actively engaging with XCN. However, by March 18, this number had dropped to just 1,044. The dramatic decrease indicates a reduction in demand for Onyxcoin and a potential loss of interest from traders and investors.

This drop in active addresses is a key indicator of reduced network participation, which is often associated with bearish market conditions. As fewer users engage with the coin, its price struggles to maintain any bullish momentum, contributing to the overall downward trend in XCN’s market performance.

Surge in Short Positions Highlights Bearish Sentiment

Further compounding the negative outlook for XCN is the growing dominance of short positions in its futures markets. According to on-chain data, Onyxcoin’s funding rate has been consistently negative throughout March, signaling that more traders are betting against the coin. In perpetual futures contracts, a negative funding rate indicates that short sellers are in control, receiving payments from long holders, which points to a pessimistic market sentiment.

This surge in short bets reflects widespread skepticism about XCN’s potential for a short-term recovery. The increasing selling pressure from these traders is limiting any chances for the coin to bounce back, keeping its price under pressure.

Selling Pressure Intensifies with Negative Chaikin Money Flow

The selling pressure on XCN is further highlighted by its Chaikin Money Flow (CMF) indicator, which is currently sitting at -0.19. The CMF is a momentum indicator that measures the flow of money into and out of an asset. A negative CMF suggests that selling activity is outpacing buying demand, reinforcing the bearish sentiment surrounding the token.

With the CMF in negative territory, the chances of a significant price recovery for XCN appear slim in the near term. This indicator points to the likelihood of further price declines, especially as investor interest remains weak and selling pressure continues to mount.

XCN’s Price Outlook: Potential for Further Decline

Given the current market dynamics, XCN’s price faces strong downside risks. If the bearish momentum persists, the coin could test further support levels, with $0.0075 identified as the next critical price point to watch. A break below this level could trigger even deeper declines, extending the ongoing downtrend for Onyxcoin.

On the other hand, if the sentiment were to shift and buying activity picks up, XCN could see a recovery toward $0.022. However, for this to happen, investor confidence would need to strengthen, and the negative momentum indicators would need to reverse.

Conclusion: A Bearish Outlook for Onyxcoin

Onyxcoin is facing significant challenges in the market, with declining active addresses and a surge in short positions contributing to a negative outlook. The coin’s price is under strong selling pressure, and unless there is a major shift in sentiment, XCN could continue to struggle. Investors should be cautious, as the current market conditions point to further declines for the token in the short term. Only a shift in market dynamics, including a reversal in the negative funding rates and stronger investor engagement, could reverse the current bearish trend for Onyxcoin.