Onyxcoin's Bull Run Falters: 57% Plunge Amid Bearish Pressure

Onyxcoin, a cryptocurrency that had been on a bullish run since the beginning of the year, has recently experienced a significant downturn. The coin, which reached its all-time high of $0.049 on January 26, has since shed 57% of its value, trading at $0.015 at press time. This decline is a result of mounting bearish pressure in the market, with indicators signaling further downside risks.

Spot market outflows have been a significant factor in Onyxcoin's recent price decline. According to Coinglass, the altcoin recorded only four days of inflows in February, totaling just $3.5 million. Conversely, spot outflows exceeded $15 million during the same period. This trend indicates that profit-taking is significant among Onyxcoin traders, potentially lowering its prices in the short term.

Moreover, Onyxcoin's funding rate has been predominantly negative since the beginning of the year, highlighting the bearish bias toward the coin. This periodic fee, exchanged between long and short traders in perpetual futures contracts, is designed to keep contract prices aligned with the spot market. When persistently negative like this, it means short positions are dominant, indicating traders are betting on further price declines, which can further reinforce bearish sentiment.

On the daily chart, Onyxcoin remains within a descending parallel channel it has traded within since January 26. This bearish pattern is formed when an asset's price moves between two downward-sloping parallel trendlines, indicating a sustained downtrend. The pattern suggests that Onyxcoin sellers are in control, and a drop below the lower trend line, which forms support, hints at further downside. If this happens, Onyxcoin's price could drop to $0.0075.

However, a bullish resurgence in the Onyxcoin market could prevent this. If new demand soars, the token's value could climb to $0.022.