- The MACD indicator shows a bearish crossover, confirming a trend reversal.
- Another major support sits at $0.0165, exposing the token to further losses if breached.
- A recovery is possible if XCN reclaims $0.0187 and retests $0.0214.
Onyxcoin (XCN) plunged nearly 14% this week, signaling a sharp reversal in market sentiment after the altcoin failed to break the critical resistance level at $0.0214.
The failed breakout, combined with bearish technical signals, ended a six-week uptrend for the token.
At the time of writing, XCN trades around $0.0182, slipping below the local support at $0.0187.
Source: CoinMarketCap
This weakness triggered a cascade of liquidations, adding further downward pressure to Onyxcoin’s near-term outlook.
The recent drop follows a period of relative optimism when XCN drew renewed investor attention amid rising on-chain activity.
Its inability to hold above key price levels now points to growing caution among traders.
Traders Liquidated as XCN Fails to Hold Support
The shift in momentum for XCN was first signaled by the MACD (Moving Average Convergence Divergence), which registered a bearish crossover roughly 72 hours ago.
Real-time liquidation data confirmed the turn, showing long positions worth nearly $2 million were liquidated.
That figure represents about 16% of Onyxcoin’s total open interest of $12 million.
These liquidations are significant given XCN’s relatively small market capitalization and trading volume compared with major assets. The scale of the liquidations suggests many retail traders were caught off guard by the sudden shift, intensifying negative sentiment.
If bearish conditions persist, further liquidations could push the token lower as leveraged traders rush to exit positions.
Technical Levels Signal Further Downside for XCN
Now trading below local support at $0.0187 and the key resistance at $0.0214, the next major downside target is $0.0165.
This support level is crucial to prevent deeper losses. A decisive break below $0.0165 could trigger another wave of long liquidations and extend the current downtrend.
The price failure follows two April attempts to reclaim the $0.0214 resistance, both of which met rejection and confirmed the level as a strong ceiling in the current market environment.
Until XCN can retest and convincingly clear that barrier, sentiment is likely to remain bearish.
Recovery Depends on Regaining $0.0187
There remains a narrow path to recovery. If Onyxcoin can reclaim $0.0187 as support and consolidate above it, the token could mount another attempt to challenge the $0.0214 barrier.
A successful breakout above that level would negate the current bearish trend and could spark a short-term bullish reversal.
Broader market sentiment will also play a role. With Bitcoin and Ethereum showing signs of consolidation and risk appetite among altcoin investors fluctuating, Onyxcoin may need more than technical support to stage a sustained rebound.
Traders are closely watching whether $0.0165 holds or if another leg down is imminent.