Onyxcoin token has given back some of the gains made last week as investors book profits and wait for the next catalyst.
Onyxcoin (XCN) price dropped to a low of $0.0170 on April 16, down by over 37% from its highest point this month.
The ongoing decline is likely due to investors selling the news after Binance Futures listed the token. Historically, cryptocurrencies rally after a major exchange listing and then pull back once the listing goes live.
Onyxcoin has also declined because the network has not made any headlines following last week’s Binance listing. As such, some investors who benefited from the rally have started to book profits.
XCN price has also dropped as the total value locked in its ecosystem continues to fall. Data shows that Onyx currently holds only $123,990 in total assets, down from last week’s high of $146,000. This makes it a small player in the layer-1 industry, which has over $90 billion in total assets.
Onyxcoin’s daily trading volume has also plunged over the past few days. CoinMarketCap data shows that volume slipped by 30% to $93 million, down from $600 million last week. Most of the trading activity is occurring on exchanges like Coinbase, Bitget, and MEXC.
Onyxcoin price technical analysis
XCN price chart | Source: crypto.news
The daily chart shows that the XCN token was in a tight range before last week’s surge, a sign it was in the accumulation phase of the Wyckoff Theory. It then entered the markup phase, characterized by a parabolic move that pushed it above the 50% Fibonacci retracement level.
It has now moved into the distribution phase, which is characterized by greater supply than demand. This selling pressure typically comes from panicked traders who bought during the climb.
Onyxcoin has also dropped below the strong pivot reversal point of the Murrey Math Lines at $0.0183. Therefore, the coin will likely continue falling as sellers target this month’s low of $0.00755, which is about 55% lower than the current level.
However, the risk of shorting XCN is that it often stages parabolic moves. For example, it soared by 150% in a 24-hour session in January. It also jumped by another 35% a few days later.
