- The MACD indicator shows a bearish cross, confirming a trend reversal.
- The next significant support sits at $0.0165, exposing the token to further downside risk.
- A recovery will be possible if XCN reclaims $0.0187 and retests $0.0214.
Onyxcoin (XCN) suffered a sharp decline of nearly 14% this week, signaling a rapid shift in market sentiment after the altcoin failed to break the critical resistance at $0.0214.
The failed breakout, combined with bearish technical signals, ended a six-week rally for the token.
At the time of writing, XCN trades at $0.0182, slipping below local support at $0.0187.
Source: CoinMarketCap
This weakness triggered a cascade of liquidations, intensifying the selling pressure on Onyxcoin’s short-term outlook.
The recent downturn followed a period of relative optimism, during which renewed on-chain activity drew investor attention to XCN.
However, the token’s inability to hold key price levels indicates growing caution among traders.
Traders Liquidated as XCN Failed to Hold Support
The shift in XCN’s momentum was first signaled by the MACD (Moving Average Convergence Divergence), which registered a bearish cross roughly 72 hours ago.
That reversal was confirmed by real-time liquidation data showing nearly $2 million in long positions were liquidated.
That amount represents about 16% of Onyxcoin’s $12 million total open interest.
These liquidations carry weight given XCN’s relatively small market capitalization and trading volume compared with major assets.
The scale of liquidations suggests that a sizable portion of retail traders were caught off guard by the sudden shift, amplifying negative sentiment.
If bearish conditions persist, additional liquidations could drive the token lower as leveraged traders rush to close positions.
Technical Levels Point to Greater Downside Risk for XCN
With XCN trading below local support at $0.0187 and the key resistance at $0.0214, the next important downside target is $0.0165.
This support level is critical to preventing further losses. A decisive break below $0.0165 could trigger another wave of long liquidations and extend the current downtrend.
The price failure followed two April attempts to reclaim the $0.0214 resistance.
Both attempts were rejected, reinforcing that the level is acting as a strong ceiling in the current market environment.
Until XCN retests and successfully clears that level, sentiment is likely to remain bearish.
Recovery Depends on Reclaiming $0.0187
There remains a narrow path to recovery. If Onyxcoin can reclaim $0.0187 as support and consolidate above it, the token could make another attempt to challenge the $0.0214 barrier.
A successful breakout above that resistance would invalidate the current downtrend and could trigger 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 wavering, Onyxcoin may need more than technical support to stage a sustained rebound.
For now, investors are watching closely to see whether the $0.0165 level holds or if further declines are in store.