Onyxcoin (XCN) has rallied 27% over the past week, marking a potential recovery after a multi-week retracement from $0.013 to $0.0046. The gains coincide with a broader bullish shift for Bitcoin and many altcoins. However, volume indicators show a lack of sustained buying pressure, presenting a warning sign for the rally’s longevity.
The cryptocurrency Onyxcoin has seen its price increase by 4.4% in 24 hours and 27% over the past week. This upward move follows a significant retracement from $0.013 to $0.0046 over several weeks. At the beginning of the year, the altcoin surged 217% within a single week, rallying from $0.0041 to $0.013.
It spent the remainder of January and early February retracing that sizable move. During that period, Bitcoin and the wider crypto market also experienced a downturn in momentum. The past week’s bullish sentiment for Bitcoin and many altcoins may have redirected attention and capital toward XCN.
The A/D indicator maintained its steady decline in recent months. The Chaikin Money Flow (CMF) remained at -0.06 despite the price bounce, according to data from TradingView. Both the indicators showed that there has been no sustained buying pressure driving the past week’s rally.
This was a warning to swing traders that Onyxcoin might not sustain higher prices. A shift to a more bullish view would require high buying pressure in the coming days. From a price action perspective, the strong rally in January and subsequent retracement were part of a healthy market structure.
Onyxcoin consolidated near the $0.005 lows for a month before the recent breakout. A strong rally, a sizeable retracement, and consolidation before the next move is considered a more reliable pattern. The $0.0068-$0.0075 levels are the next resistances to watch.
In the short term, a retracement toward $0.0057-$0.00545 is possible. This conclusion was drawn based on short-term Fibonacci retracement levels shown in hourly chart data. The MACD formed a bearish crossover, signaling that momentum has slowed down.
Such a retracement would offer swing traders an opportunity to go long. This idea would be invalidated if XCN falls back below the $0.005 level, indicating faded momentum. Onyxcoin spent the past two months in a deep retracement phase, but has built up steam to attempt a recovery. A short-term retracement toward $0.00545 is possible before any upward momentum continues.
