Onyxcoin (XCN) Drops 70% Since January High, Traders Bullish
1min read Onyxcoin (XCN) has experienced a significant decline since reaching its year-to-date high of $0.04 on January 26. The cryptocurrency has since lost over 70% of its value, trading at $0.011 at the time of reporting. However, the broader crypto market's renewed optimism is shifting sentiment towards XCN, suggesting a potential recovery.
On-chain data indicates that demand for long positions is increasing, signaling a resurgence in traders’ confidence. At the time of reporting, XCN’s long/short ratio stands at 1.35, its highest level in over 30 days. This ratio measures the proportion of long positions (bets on price increases) to short positions (bets on price declines) in the market. A ratio above one suggests that traders are taking more long positions, indicating a bullish outlook on the asset. When the ratio is this high, traders expect the price to rise, increasing the buy orders in the market. If this trend continues, it could drive up XCN’s demand and, consequently, its price.
Additionally, the token’s weighted sentiment is positive, further reinforcing the notion that investors’ confidence in XCN’s short-term recovery is increasing. At the time of reporting, this on-chain metric stands at 0.82. An asset’s weighted sentiment measures its overall positive or negative bias, considering both the volume of social media mentions and the sentiment expressed in those mentions. A positive weighted sentiment is a bullish signal, indicating a growth in positive bias toward XCN, which could prompt its investors to increase their trading activity, driving up its value.
Ask Aime: What factors could be driving Onyxcoin's (XCN) recent price recovery, despite a significant decline?
On the daily chart, XCN is poised to break above the upper trend line of the descending channel which has kept its price in a decline since January 26. If successful, the bullish breakout could propel the token’s price to $0.022, a high it last reached on February 18. However, if the downtrend persists, XCN could fall below the lower trend line of its descending channel, which forms support at $0.0085. In this scenario, its price could drop lower to $0.0075.
