Onyxcoin (XCN) became one of the best-performing altcoins in January 2025, surging from a market cap of $70 million on January 1 to $1 billion by January 26. This parabolic rally caught the attention of traders, with the price surging as much as 1,600%. However, the momentum has since cooled, and XCN is currently down 23% over the last 30 days. As the altcoin experiences this correction, investors are left wondering what might come next for Onyxcoin.

The RSI Indicates Weaker Buying Pressure

One of the key indicators to watch during market corrections is the Relative Strength Index (RSI). This momentum oscillator measures the speed and change of price movements, with values above 70 indicating an overbought condition and values below 30 signaling potential oversold conditions. When the RSI is between 30 and 70, it reflects a neutral trend without a strong directional bias.

For Onyxcoin, the RSI has dropped to 42, down from 52.6 just two days ago. This indicates that the buying pressure is weakening, and there’s a noticeable shift in sentiment from bullish to more cautious. Notably, Onyxcoin’s RSI has failed to surpass the 60 mark since January 30, which signals a lack of strong bullish momentum.

A further decline in the RSI below 40 could indicate a continued downtrend, as the current price levels seem vulnerable to sustained selling pressure. Unless the RSI manages to break above the 50 mark soon, it could reinforce the bearish trend, leaving XCN at risk of further declines.

ADX Shows Fading Downtrend

Another important indicator in analyzing Onyxcoin’s price action is the Average Directional Index (ADX). ADX measures the strength of a trend, without indicating its direction. It ranges from 0 to 100, where values above 25 suggest a strong trend, and values below 20 reflect a weak or non-trending market. Currently, XCN’s ADX stands at 15.6, down from 24.2 just two days ago. This decline indicates that the downward trend in Onyxcoin’s price is losing momentum and could lead to a phase of consolidation.

With the ADX below 20, the market is showing signs of indecision, and the lack of strong selling or buying pressure suggests that Onyxcoin might be stuck in a sideways trading range for the time being. Without a shift in momentum, it is unlikely that the altcoin will experience a major price reversal in the near term.

Key Support and Resistance Levels for Onyxcoin

Despite the weakening momentum, Onyxcoin’s price action can still be influenced by key support and resistance levels. The immediate support for XCN lies around $0.0145. If the price drops below this level, it could face a significant sell-off, potentially falling as low as $0.0075. This would represent a potential 51% drop from the current price, which would mark a sharp decline.

On the other hand, if XCN manages to hold above the support level and begin to recover, it could test higher resistance levels. The first major resistance is around $0.0229, followed by the $0.033 and $0.040 levels. A successful break above these resistance points could signal the end of the current downtrend and open the door for further gains, possibly recovering the bullish momentum seen in January.

Conclusion

Onyxcoin (XCN) has experienced a significant pullback after its explosive rally in January. The RSI shows a weakening of buying pressure, and the ADX suggests that the downtrend is fading, which could lead to a consolidation phase. However, if the altcoin finds support at $0.0145 and regains momentum, it could rise toward key resistance levels like $0.0229, $0.033, and $0.040.

For a bullish scenario to materialize, XCN needs to regain strong buying momentum and clear resistance levels. Traders should closely monitor the price action for signs of a breakout or a breakdown as Onyxcoin enters a critical phase in its price development.