Onyxcoin [XCN] emerged as one of the market’s top performers over the past 24 hours, posting gains of more than 50% as underlying fundamentals strengthened at press time.
In most cases, rallies backed by strong spot demand tend to draw alignment across the market, with derivatives traders reinforcing the move through long positioning. This time, however, that alignment has fractured, as perpetual traders increasingly position against further upside.
Spot demand underpins the rally
XCN’s latest move appears rooted in aggressive accumulation within the spot market.
Over the past day, investors recorded one of their largest buying sprees in over a year, driving net inflows of approximately $1.74 million, according to CoinGlass.
Such a surge in capital inflow, particularly after a prolonged lull, points to renewed conviction among market participants. Part of this demand may be linked to increased staking activity, with more than 6.3 billion XCN locked over the same period.
Sentiment indicators further reinforce this trend. Data from CoinMarketCap shows that 82% of tracked participants currently hold a bullish bias, up from 72% just a day earlier, reflecting a rapid shift in market outlook.
Holder growth signals sustained interest
Accumulation trends are also evident in on-chain participation.
At the time of writing, the number of XCN holders has climbed to a new yearly high, surpassing 146,940 addresses, with most of the expansion occurring throughout April. This steady increase suggests broadening adoption and sustained investor interest.
At the same time, the Accumulation/Distribution indicator continues to trend upward, highlighting persistent buying pressure over the past 24 hours.
If exchange activity continues to increase among traders, XCN could strengthen its bullish structure, with the potential for further highs. For now, however, the asset remains in negative territory, leaving it under sustained pressure.
Bears tighten grip in derivatives market
Despite the strength in spot markets, derivatives traders are increasingly betting against the rally.
Funding Rates across perpetual contracts remain deeply negative at -4.5009% as of writing, indicating that short sellers are paying a premium to maintain their positions. This dynamic typically reflects dominant bearish sentiment.
At the same time, Open Interest (OI) has risen sharply, suggesting that traders are not only holding but actively adding to their short exposure.
OI, which tracks total capital deployed in derivatives, has surged by more than 200% to $6.35 million. The parallel rise in OI and negative Funding Rates underscores strong conviction among bearish traders.
Still, the divergence between spot demand and derivatives positioning remains critical. Historically, strong fundamental backing can absorb selling pressure and limit downside, even when short interest builds aggressively.
Final Summary
- Spot-driven demand and improving fundamentals continue to support XCN’s upside momentum.
- Perpetual futures data shows a sharp increase in short positions, signaling growing bearish conviction.
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