The recent decline in Onyxcoin has raised concerns among short-term investors, but analysis suggests a different narrative. While the price drop appeared bearish, it may have opened an accumulation phase for savvy traders. Many investors failed to recognize this shift, resulting in premature selling during the downturn.
Investor sentiment turned notably bearish over the past week, with exchange balances for Onyxcoin increasing by approximately 350 million XCN, valued at nearly $2 million at current prices. Such inflows typically indicate a rise in sell pressure rather than a commitment to long-term holding. This wave of selling followed a 12% decline in Onyxcoin”s price, triggering panic among holders, particularly those who had recently entered the market. Many chose to exit their positions rather than wait for market signals, contributing to increased volatility.
Despite the visible selling pressure, broader market indicators hint at a potential recovery. One key metric, the MVRV Long/Short Difference, has been trending upwards. This metric monitors profit and loss shifts between long-term and short-term holders. An increase in this value indicates that short-term traders are experiencing diminishing profits, which typically results in reduced selling pressure. As the incentive to sell wanes, the likelihood of price stabilization increases.
Currently, Onyxcoin is trading around $0.0057, maintaining support above the $0.0054 level amidst recent volatility. In the past month, the token has established a flag pattern, a technical formation that often signals a continuation following a period of consolidation. The measured move from this pattern suggests a potential rally of 150%, projecting Onyxcoin to approximately $0.0156 if a breakout occurs. However, achieving this target will likely depend on broader market support and sustained demand.
A more conservative outlook would focus on reclaiming resistance levels closer to $0.0077, which would confirm bullish intent and validate the breakout structure. Should this level be surpassed, Onyxcoin could aim for $0.0095, with the psychological barrier of $0.0100 serving as a potential catalyst for momentum-driven buying. Conversely, there remains a downside risk if market sentiment deteriorates further. A failure to maintain current support levels could see Onyxcoin decline towards $0.0047, with a breakdown below this threshold exposing $0.0041 as the next target, potentially invalidating the bullish outlook altogether.
