Onyxcoin (XCN) Faces 15% Decline, Traders Pull Back Out Of Fear

Onyxcoin (XCN) has seen a significant price decline over the past month, dropping from $0.035 to $0.013 today. This ongoing downtrend mirrors Bitcoin’s price action, as the altcoin appears to be following the broader market’s bearish sentiment. 

The massive downturn has caused uncertainty, especially among futures traders.

Onyxcoin Traders Are Pulling Back

The open interest in Onyxcoin has taken a dramatic hit, falling over 50% in just a week. It dropped from $10.8 million to $4.7 million, reflecting traders pulling their money out due to the altcoin’s lack of recovery. This decline in open interest signals a bearish outlook and fear due to the lack of growth in the asset.

Moreover, the rapid decline in open interest suggests that traders are hesitant to bet on Onyxcoin in the near future. The lack of any recovery momentum has likely prompted many to seek more stable alternatives. This further discourages potential new investors from entering the market, deepening the bearish sentiment. 

XCN Open Interest. Source: Coinglass

Onyxcoin shares a strong correlation with Bitcoin, which currently stands at 0.81. This high correlation means that XCN has been closely following Bitcoin’s market movements. Given Bitcoin’s recent drop below $80,000, the bearish trend in Bitcoin has spilled over to Onyxcoin, dragging its price lower.

The relationship between XCN and Bitcoin emphasizes the broader market’s influence on altcoins. Bitcoin’s bearish performance, marked by sharp declines, is a significant factor in Onyxcoin’s ongoing downtrend. If Bitcoin fails to recover, Onyxcoin’s price may face further pressure, with limited potential for a reversal without broader market improvement.

XCN Correlation With Bitcoin. Source:  TradingView

XCN Price Decline Continues

XCN’s price is down 15% in the last 24 hours, trading at $0.013 after losing the crucial support of $0.015. However, the coin is currently holding above the $0.012 support level. Despite this, the bearish trend continues to dominate, and the altcoin is vulnerable to further declines.

If the downtrend persists, XCN could fall below $0.012, testing the next support at $0.010. This would extend the current month-long downward spiral, potentially deepening losses for investors. A breach of this level would be a major setback, signaling a further bearish outlook.

XCN Price Analysis. Source:  TradingView

However, if Bitcoin manages to regain momentum and XCN follows suit, the altcoin could break through the $0.018 barrier. A successful flip of this resistance into support would invalidate the bearish thesis, offering hope for price recovery and signaling the end of the downtrend.