Onyxcoin Surges 15% as Whales Drive Price Breakout

Onyxcoin (XCN) has recently experienced a significant surge, with its price increasing by 15% and its market capitalization exceeding $500 million. This surge was accompanied by a 77% increase in daily trading volume, reaching $88 million. The price breakout occurred after XCN pierced the apex of a descending wedge that had constrained its price for the past six months, reaching $0.01518. This breakout has raised questions about whether XCN can sustain its momentum or if it will revert to its previous support levels.

The breakout from the descending wedge is seen as a bullish indicator. If the price can maintain above $0.015, it could potentially reach new highs up to the next resistance level at $0.03. However, if the price declines and falls below $0.015, it may experience a retracement to the lower trendline of the wedge, with crucial support targets at $0.014 and $0.012.

On-chain data from EtherScan revealed that 1.78 billion XCN were transferred in 24 hours, with a transaction value of $31 million. This surge in transfers involved 3,596 transactions, with 1,414 unique receivers and 992 unique senders, totaling 1,668 unique participants. The large network transfers appeared to be linked to strategic accumulation rather than panic exits, suggesting that whales may be driving the surge in XCN's price.

CryptoQuant's data showed that whale orders were dominating the spot market, with large buy volumes clustering at $0.0144 right before the breakout. The Spot Taker Cumulative Volume Delta also flipped green, indicating that taker buyers have taken control. However, derivatives traders were not as bullish, with sell orders stacking up in futures markets, pointing to short positions being built even as spot traders bid prices higher. This divergence reflects hesitation from leveraged players despite the clean technical breakout.

According to the analyst's forecast, the movement out of the wedge was a bullish indication, and in case the price maintained to stay above $0.015, new highs might be expected up to the next resistance level at $0.03, which ought to be broken. However, the divergence between spot and derivatives markets raises questions about the sustainability of the rally. If derivatives traders continue to build short positions, it could potentially lead to a selloff and a reversal of the recent gains.