Onyxcoin (XCN) has experienced a significant downturn in recent weeks, with its price falling nearly 50% over the past month.
Currently trading at $0.0090, the altcoins performance has sparked concerns among holders as it faces the possibility of a major bearish move, including a potential Death Cross.
Onyxcoin Investors Are Losing Profits
The MVRV Long/Short Difference, a key metric for understanding investor sentiment, has dropped to a 4-month low. This indicates that long-term holders (LTHs) are losing profitability, with the indicator barely above the zero line.
If this metric continues to decline and crosses into negative territory, it would suggest that short-term holders (STHs) are now the ones profiting, further fueling the bearish sentiment around Onyxcoin.
In addition, the decrease in the MVRV Long/Short Difference reflects the lack of confidence from LTHs, who have previously been the main supporters of the altcoin. As these holders become less profitable, the chances of selling pressure mounting increase, which could worsen the current downtrend.
Onyxcoin MVRV Long/Short Difference. Source: Santiment
Onyxcoins technical indicators are also signaling further challenges. The Exponential Moving Averages (EMAs) are nearing a Death Cross, a bearish event that occurs when the 200-day EMA crosses below the 50-day EMA. If the downtrend continues, the likelihood of this crossover becomes higher, which would indicate that selling pressure is dominating.
A Death Cross is generally viewed as a signal for further price decline and a continuation of the bearish trend. The growing concern is that if the Death Cross is confirmed, Onyxcoin could face a significant correction, potentially dropping lower.
XCN EMA. Source: TradingView
XCN Price Continues To Fall
Onyxcoins price is currently sitting at $0.0090, having experienced a significant 50% decline over the last month. If the downward momentum persists, XCN could fall to the $0.0083 support level, further extending its losses.
Given the current bearish indicators, it is more likely that XCN could test lower support levels, with a potential drop to $0.0070 if the $0.0083 support fails to hold. This would mark another leg down in the altcoins struggle to regain upward momentum.
XCN Price Analysis. Source: TradingView
However, if Onyxcoin manages to reverse its trend and breach the $0.0100 barrier, it could potentially climb toward $0.0120, invalidating the bearish outlook.
This scenario would require significant buying pressure and a shift in investor sentiment, something that may become more plausible if the market conditions improve.