Onyxcoin has attempted a recovery after facing consistent selling pressure for most of the month. The recent bounce helped XCN reclaim short-term levels and triggered a technical breakout attempt.
Despite this move, underlying indicators remain weak. Several on-chain and liquidity metrics suggest the breakout may struggle to sustain, raising doubts about continued upside.
Onyxcoin Holders Are Selling
Market sentiment around Onyxcoin remains fragile as long-term holders begin to reduce exposure. The HODLer Net Position Change shows steady distribution over recent days. Long-term holders sold roughly 25 million XCN during the past 10 days. This activity indicates declining conviction among investors who typically anchor price stability.
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When long-term holders shift from accumulation to selling, rallies often lose strength. These participants usually sell only when confidence weakens. Their exit adds supply to the market and limits upside momentum. The ongoing distribution suggests skepticism toward the current breakout attempt rather than renewed optimism.
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Macro momentum further reinforces a cautious outlook. The Chaikin Money Flow indicator shows sustained outflows over the past week. CMF has dropped below the zero line, signaling that selling volume outweighs buying pressure. This shift reflects capital leaving Onyxcoin rather than rotating into it.
Negative CMF readings often precede failed breakouts. Without inflows, price advances lack support and become vulnerable to reversals. Rising outflows reduce liquidity and weaken demand. As long as CMF remains negative, the probability of a sustained breakout rally stays limited.
Can XCN Price Sustain Its Breakout?
From a technical standpoint, the XCN price is attempting to break out of a descending wedge formed over the last three weeks. This pattern typically carries bullish implications when confirmed. The measured move projects a potential 28% rise, targeting $0.0088. Such setups often attract short-term traders seeking momentum.
However, the price structure remains fragile. XCN is currently trading near $0.0072, below the key $0.0077 resistance level. Given weakening sentiment and persistent outflows, downside risk remains elevated. Failure to reclaim resistance could push the altcoin toward $0.0062. A deeper pullback to $0.0054 would extend the broader bearish trend.
A bullish scenario still exists if market conditions improve. Sustaining the breakout requires flipping $0.0077 into reliable support. Achieving this would signal renewed buyer commitment. Under stronger participation, XCN could advance toward $0.0088. A further push to $0.0100 would invalidate the bearish thesis and confirm trend reversal potential.
