Onyxcoin (XCN) had been in a three-week-long downtrend, erasing much of the gains it made in January. While the altcoin is preparing for a potential bullish breakout, it faces challenges in ensuring a strong recovery.
Continued outflows and investor sentiment are proving to be key hurdles for XCN’s recovery.
Onyxcoin Investors Are Pulling Back
The network growth indicator for Onyxcoin has recently reached a monthly low, signaling a decrease in new addresses on the network. This metric helps gauge how well the altcoin is gaining traction among new investors. Unfortunately for XCN, the prolonged decline has resulted in a loss of interest from potential buyers.
The drop in network growth reflects waning confidence, which is impacting XCN’s ability to recover. With fewer new participants entering the market, XCN is struggling to build momentum, leaving the altcoin more vulnerable to further downside risks. For a meaningful recovery, the altcoin will need to attract fresh investor interest.
Onyxcoin’s broader momentum is showing signs of weakness, as indicated by the Chaikin Money Flow (CMF). The CMF has exhibited a sharp downtick over the last few days, suggesting that money is flowing out of the asset. This pullback could reflect growing investor frustration with the lack of price recovery.
The decline in the CMF is a sign that XCN holders are pulling their funds, possibly due to the prolonged downtrend. If this trend continues, it could delay or even prevent a full recovery, as outflows put downward pressure on the price. Without a shift in market sentiment, Onyxcoin could continue to face challenges.
XCN Price Prediction: Breakout May Not Materialize
XCN’s price is breaking out of a descending wedge pattern it had been stuck in for nearly four weeks. This bullish pattern typically signals a potential 66% rally post-breakout, with the target price set at $0.0398. However, achieving this level will depend on overcoming the challenges posed by current market conditions.
Firstly, the altcoin needs to secure $0.0237 as support. If investor behavior improves and broader market conditions become more favorable, XCN could rise toward $0.0358. However, this scenario will require stronger investor confidence and positive market cues.
A more realistic approach, based on the current market sentiment, suggests XCN might hover around the $0.0237 level. Losing this support could result in a consolidation period, with the price potentially dropping to $0.0184. This would prolong the altcoin’s downtrend and prevent any immediate recovery.
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