Onyxcoin Surges 12% Weekly, But Bullish Momentum Fades

Onyxcoin (XCN) has experienced a notable increase, rising more than 3% in the last 24 hours and nearly 12% over the past week. This surge has brought its market capitalization back to approximately $640 million. However, despite this recent growth, technical indicators suggest that the bullish momentum for Onyxcoin may be waning.

Onyxcoin's Relative Strength Index (RSI) currently stands at 48.89, after peaking at 75 just five days ago. The RSI had dropped sharply to 34.88 but has since recovered, indicating that selling pressure may be easing. This recent bounce suggests that momentum is attempting to stabilize, although the token remains well below the overbought zone it touched earlier in the week. The RSI is a widely used technical indicator that measures the speed and magnitude of an asset’s recent price movements to assess whether it is overbought or oversold. Typically, an RSI above 70 indicates overbought conditions and potential for a pullback, while an RSI below 30 signals oversold conditions and potential for a rebound. With XCN’s RSI now sitting at 48.89, the token is in a neutral zone, providing room for further upside if positive momentum continues. If buying pressure increases from here, XCN could build a stronger recovery without immediately facing technical resistance from overbought conditions.

Onyxcoin's Average Directional Index (ADX) is currently at 23.64, a significant drop from the 50 level it reached just two days ago. This sharp decrease suggests that the strength of the recent trend has weakened, even though Onyxcoin remains technically in an uptrend. The ADX is a technical indicator that measures a trend’s strength, but not the direction. Values above 25 typically suggest a strong trend, while values below 20 point to a weak or directionless market. With XCN’s ADX now sitting at 23.64, the trend is still moderately strong but close to losing strength if the reading continues to fall. This means that while Onyxcoin’s uptrend remains, it may require renewed buying pressure soon to avoid slipping into a period of consolidation or sideways movement.

Onyxcoin's Exponential Moving Average (EMA) lines remain bullish, with the short-term EMAs still positioned above the long-term ones. However, the gap between the short-term and long-term EMAs has narrowed compared to previous days, indicating that the bullish momentum is losing some strength. While the general trend remains positive, the shrinking distance between the EMAs suggests that the market is approaching a critical point where a clearer direction could soon emerge. In the last few days, Onyxcoin successfully tested and held the support zone around $0.018, but this level remains fragile. If XCN tests this support again and fails to hold it, the price could drop toward the next support near $0.016. On the upside, if buying momentum returns, XCN could rally to test the $0.024 resistance. A breakout above $0.024 could open the door for a continuation toward $0.027, offering a strong bullish setup if momentum strengthens.

In summary, while Onyxcoin has shown impressive gains recently, the technical indicators suggest that the bullish momentum may be fading. The RSI indicates a neutral zone with potential for further upside, the ADX shows a weakening trend strength, and the narrowing EMA gap signals caution. Investors should closely monitor these indicators as Onyxcoin approaches a critical juncture that could determine its next major move.