Onyxcoin price has surged nearly 52% within the last 24 hours, extending its seven-day rise to over 100%. Such drastic steps often raise a key query. Is this a leveraged short squeeze or a move supported by real demand?
So far the info is leaning towards the second option. Although volatility stays high, several indicators suggest that the rally shouldn’t be a mere coincidence. Volume, capital flow and derivatives positioning all point to an lively but not overheated market. Here's what the charts actually say.
Trend breakout and volume confirm buyer support
XCN price’s breakout above all exponential moving average lines didn’t occur in isolation. On the day by day chart, Onyxcoin has broken through key resistance levels while forming a potentially bullish exponential moving average crossover.
An exponential moving average (EMA) smoothes price data while adding more weight to recent movements. When the 20-day EMA approaches and potentially crosses the 50-day EMA, it often signals improving trend strength. XCN is now on the verge of this crossover, supporting the notion that the general trend is shifting to the upside.
The volume confirms this move. On-balance volume (OBV), which tracks whether volume is flowing in or out of an asset, has broken a long-standing descending trend line. The OBV rising with price suggests that buyers are engaging with conviction and not only reacting to forced liquidations.
Volume Support: TradingView
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Newer candles also feature long upper and lower wicks. This suggests that each buyers and sellers are lively and the worth stays at higher levels.
Taken together, the EMA setup and OBV breakout suggest that this rally is being supported by spot demand and not only short-term speculation.
Capital flow signals support the rally, not a blow-off top
To understand whether larger players are involved, capital flow is more necessary than price alone.
The Chaikin Money Flow (CMF) indicator helps measure whether money is flowing into or leaving an asset. If the CMF stays above the zero line, it indicates net buying pressure. In the case of XCN, CMF trended higher whilst the worth fell between October and early January.
Capital flow joins in: TradingView
This divergence is vital. It shows that capital was quietly flowing throughout the downtrend. As price has now broken higher, the CMF has remained strong, reinforcing the notion that this rally is being supported by real buying and not only momentum chasing.
This alignment between price, OBV and CMF reduces the likelihood of a classic bull trap. Strong rallies that fail often show a slowdown in volume or capital flow. That's not happening here yet.
Derivatives and Onyxcoin price levels will determine what comes next
Leverage-driven rallies often collapse quickly when positioning becomes one-sided. This doesn’t seem like the case with Onyxcoin in the meanwhile.
There is a balance between short and long leverage on the XCN perpetual futures liquidation chart. The cumulative short liquidation is about $1.58 million, while the long liquidation is about $1.36 million. No page is overcrowded. This balance reduces the danger of a drastic reversal of the squeeze and suggests that the market stays orderly.
The focus now shifts to the worth level.
Onyxcoin price is currently testing resistance near $0.0095 (after two rejections). A transparent break and hold above this level would open the door towards $0.0110, which is in step with Fibonacci extensions and represents an upside of around 21% from current levels.
On the opposite hand, staying above $0.0084 is crucial. Failure to succeed in this level could end in a fast pullback towards $0.0074, especially if long positions are unwound. Still, this is able to look more like a reset than a trend failure unless volume and capital flow slows sharply.
After a 100% weekly rally, caution is suggested. Currently, the XCN charts suggest that the move is finding support. Whether there may be more upside left within the tank relies on how price behaves near resistance, not how far it has already traveled. The key to a significant increase in Onyxcoin price is now at $0.0095.
The post Onyxcoin (XCN) Price Doubles in a Week – Charts Show More Upside Potential within the Tank appeared first on BeInCrypto.
Article source: beincrypto.com
The post Onyxcoin (XCN) Price Doubles in a Week – Charts Show More Upside Potential within the Tank appeared first on Crypto Adventure.
