Onyxcoin (XCN) has experienced a sharp decline this week, losing 14% of its value after failing to breach a critical resistance level. The altcoin attempted to push past $0.0214 but faced rejection, which has led to further losses for traders.
This signals the end of a six-week bull run, and further declines seem likely as the market sentiment turns bearish.
Onyxcoin Traders Face Losses
The overall macro momentum for Onyxcoin shows a shift from bullish to bearish. The MACD (Moving Average Convergence Divergence) indicator, which had been showing positive momentum, recently registered a bearish crossover.
This shift occurred approximately 72 hours ago, signaling that the six-week bull run for XCN has come to an end. As a result, Onyxcoin may experience continued price declines, with the next major support level likely to be tested soon.
Traders are facing significant losses as the bearish momentum takes hold. The liquidation map reveals that Onyxcoin traders are facing $2 million worth of long liquidations, which represents 16% of the total open interest of $12 million.
While this might not seem substantial in a broader market context, the liquidation of these positions could further shift the sentiment toward a more bearish outlook for XCN.
As more traders face liquidation, the negative sentiment could increase, making it harder for Onyxcoin to recover. The cascading effect of these liquidations might lead to additional selling pressure, deepening the decline.
XCN Price Susceptible To Decline
XCN is down nearly 14% this week, currently trading at $0.0183. The altcoin failed to breach the $0.0214 resistance for the second time this month, which has led to a drop below the local resistance of $0.0187.
This failure to break key resistance levels has opened the door for further downside, making the price susceptible to additional declines.
The next major support for Onyxcoin is at $0.0165. If the price continues to fall, this support level is likely to be tested. A breach below $0.0165 could trigger further long liquidations, potentially causing Onyxcoin to fall even lower. The current market conditions suggest that further losses may be imminent if the altcoin fails to stabilize above this key level.
However, if XCN manages to reclaim $0.0187 as support, it could signal a potential recovery. A successful bounce off this support would allow the altcoin to test the $0.0214 resistance once more, and a break above this level would invalidate the bearish thesis.
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Disclaimer
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