Onyxcoin struggles after massive rally—What’s next for XCN?

• Onyxcoin formed a short-term range after its pullback from $0.0499.
• The CMF showed selling pressure remained intense across timeframes.

Onyxcoin [XCN] had pulled a 22x from the 1st of January to the 26th, but has receded noticeably since then. The vast gains meant that the higher timeframe outlook remained bullish.

This could give the Onyxcoin market some time to consolidate before its next move higher.

Should you buy more XCN at $0.02?

Source: XCN/USDT on TradingView

Based on the rally from $0.0111 to $0.0499, a set of Fibonacci retracement levels were plotted. It showed that the 78.6% level at $0.0194 continued to serve as support.

This rally was chosen due to the short-term consolidation just above $0.01 before the move occurred in the second half of January.

Since reaching its zenith, Onyxcoin has trended downward over the past three weeks. The daily market structure was bearish, although key retracement levels were defended.

Hence, on the higher timeframes, the trend was upward, and the current price action was a pullback.

This outlook might be encouraging for investors, but the CMF and MACD were not. The CMF was at -0.25 to signal heavy selling pressure, and the MACD showed bullish weakness.

A crossover below the zero line would signal downward momentum was dominant on the daily timeframe.

Source: XCN/USDT on TradingView

The 4-hour chart showed that XCN could have halted its pullback. A range formation between $0.02 and $0.0255 was spotted.

The market structure was bearish on this timeframe too, since no new swing highs and lows have been set over the past two weeks.

The CMF poked its head above +0.05 briefly, but quickly fell lower. The MACD signaled momentum was neutral as the price retested the mid-range level as support.

Source: Coinglass

The liquidation map showed that the $0.02-$0.021 region had high leverage long liquidations. It also coincided with the range lows.

Given the CMF and weak momentum, it was likely that XCN prices would retest $0.02 before climbing higher due to the liquidity present there.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion