Onyxcoin [XCN] has rallied 4.4% in 24 hours and 27% over the past week. The token price gains came after a multi-week retracement from $0.013 to $0.0046.
At the beginning of the year, the altcoin 217% within a week, rallying from $0.0041 to $0.013.
It spent the rest of January and the first week of February retracing this sizeable move.
At the same time, Bitcoin [BTC] and the wider crypto market also saw a downturn in momentum.
The past week has been bullish for Bitcoin and many altcoins. This shift in short-term sentiment might have brought attention and capital to XCN. Can the bulls keep the rally going?
Warning signs from volume indicators
The A/D indicator maintained its steady decline in recent months. The CMF was still at -0.06 despite the price bounce. Both the indicators showed that there has been no sustained buying pressure driving the past week’s rally.
This was a warning to swing traders that Onyxcoin might not be able to keep going higher. High buying pressure in the coming days would change this cautious outlook toward a more bullish view.
The price action perspective offered a more encouraging signal for buyers. The strong rally in January and the subsequent retracement were part of a healthy market.
Onyxcoin even saw a month of consolidation near the $0.005 lows before the recent breakout.
A strong rally, a sizeable retracement and consolidation before the next move is more reliable. The coin has spent time at the lows, confirming them as a steady demand zone.
The $0.0068-$0.0075 levels are the next resistances to watch out for.
Short-term XCN price trajectory
In the short-term, a retracement toward $0.0057-$0.00545 was possible.
This conclusion was drawn based on the short-term Fibonacci retracement levels. The MACD formed a bearish crossover on Sunday, signaling that momentum has slowed down.
Such a retracement would offer swing traders an opportunity to go long. This idea would be invalidated if XCN falls back below the $0.005 level, which would mean the momentum has faded.
Final Summary
- Onyxcoin spent the past two months in a deep retracement phase, but has built up steam to attempt a recovery.
- A short-term retracement toward $0.00545 is possible before the upward momentum continues.
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