Home Altcoins News Onyxcoin (XCN) Struggles with Recovery Amid Investor Pullback

Onyxcoin (XCN) Struggles with Recovery Amid Investor Pullback

Onyxcoin price

Onyxcoin (XCN), once a promising altcoin, has been facing significant challenges on its road to recovery. Despite briefly breaking free from a descending wedge pattern, the coin is struggling to gain meaningful traction due to a combination of investor pullback and sluggish network growth.

XCN had been on a downtrend for nearly three weeks, erasing most of the gains it made earlier in January. Although the altcoin has shown signs of a potential bullish breakout, ongoing investor outflows and weakening sentiment have created a tough environment for a lasting recovery.

Investor Sentiment Weakens Amid Outflows

One of the key factors holding XCN back is a sharp drop in network growth. The network growth indicator, which tracks the number of new addresses joining the network, has recently reached a monthly low. This is a worrying signal, as it suggests a lack of fresh investor interest. Without new participants, Onyxcoin is unable to build the momentum needed for a sustained recovery, making it more vulnerable to further declines.

According to data from Santiment, the recent trend of decreasing network growth highlights a loss of confidence among investors. This decline in network activity is further compounded by the rising number of investor outflows, as seen in the Chaikin Money Flow (CMF) indicator. The CMF, which measures the flow of money into or out of an asset, has shown a sharp downturn over the past few days. This points to growing investor frustration, with funds flowing out of XCN and creating downward pressure on its price. If this trend continues, Onyxcoin may struggle to reverse its negative momentum.

Can Onyxcoin Overcome Its Price Resistance?

XCN’s price has recently broken out of a descending wedge pattern that had kept it trapped for weeks. Typically, this technical pattern indicates that the asset could rally by as much as 66% after a breakout. This would place XCN’s price target at around $0.0398. However, despite the breakout, the coin faces several obstacles that make it difficult for it to reach this target.

For XCN to confirm a bullish trend, it must first secure the $0.0237 level as support. If the altcoin can hold above this level and attract renewed investor interest, it could rise to $0.0358. However, such a scenario relies heavily on improved market conditions and stronger investor confidence, which remain uncertain at this time.

The Realistic Outlook for XCN

While a bullish breakout is possible, the current market sentiment suggests a more cautious outlook for Onyxcoin. It is likely that XCN will continue to hover around the $0.0237 level in the short term, as investor participation remains subdued. Without a meaningful increase in market confidence, the altcoin may not be able to gain the momentum required to push higher.

Moreover, if XCN fails to maintain support at $0.0237, it could face a deeper decline. The next major support level lies at $0.0184, and if this level is breached, XCN could enter a consolidation phase that prolongs its downtrend. Such a scenario would delay any potential recovery and keep the altcoin stuck in a bearish cycle.

A Crucial Test for Onyxcoin

XCN finds itself at a critical juncture. The coming days could be pivotal for its price trajectory. If the coin can secure support at $0.0237 and attract renewed investor interest, a potential rally toward $0.0358 becomes a possibility. However, if investor sentiment continues to weaken and outflows persist, XCN may continue to face downward pressure, with a decline to $0.0184 becoming increasingly likely.

As Onyxcoin faces an uphill battle for recovery, its future largely depends on the actions of investors and broader market conditions. If XCN can regain investor confidence and break through key resistance levels, it may still have a shot at a successful rebound. However, if current trends persist, the altcoin could be stuck in a prolonged period of consolidation, making a meaningful recovery seem distant.

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MikeT

Mike T, an accomplished crypto journalist, has been captivating audiences with her in-depth analysis and insightful reporting on the ever-evolving blockchain and cryptocurrency landscape. With a keen eye for market trends and a talent for breaking down complex concepts, Mike's work has become essential reading for both crypto enthusiasts and newcomers alike. Appreciate the work? Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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