Onyxcoin Surges 3.657% as Bullish Momentum Drives Price Above Key Resistance

Onyxcoin's latest price was $0.01996, up 3.657% in the last 24 hours. This surge in price has been driven by a significant shift in market dynamics, with the altcoin experiencing a strong rebound after hitting a low on April 7. The demand for Onyxcoin has soared since then, pushing its momentum up and breaking above a key descending resistance trend line. This breakout has triggered a bullish move, leading to significant gains over the past week.

On the daily chart, Onyxcoin’s Balance of Power (BoP) supports the ongoing rally. The BoP, which measures buying and selling pressures, is above zero, indicating that buyers are in control of the market. This is a bullish sign, suggesting that Onyxcoin’s upward price movement is being driven by strong demand. A consistently positive BoP for the token would indicate sustained buying momentum, which, if maintained, could lead to continued price growth.

However, Onyxcoin’s derivatives traders do not share this bullish bias. The token’s persistently negative funding rate reflects this. The funding rate is a periodic payment exchanged between long and short position holders in perpetual futures contracts. It is designed to keep the contract’s price in line with the asset’s spot price. When the funding rate is negative, short position holders are paying long position holders, indicating that the market is bearish, with more traders betting on price declines. Onyxcoin’s climbing buying pressure and negative funding rate signal a divergence between spot market sentiment and derivatives market positioning. This trend suggests that while the broader derivatives market expects a price decline, actual buying activity on the spot market is driving upward momentum, setting the stage for a short squeeze if the rally continues.

Onyxcoin’s rally over the past week has pushed its price above the 20-day exponential moving average (EMA). The 20-day EMA measures an asset’s average trading days over the past 20 trading days, giving more weight to recent prices. When the price climbs above it, it signals that buying pressure is high. As Onyxcoin breaks above this level, it confirms that the asset is entering an uptrend. Traders often look for this type of crossover as a sign of bullish strength, indicating increased buying pressure and a possible continuation of the rally. If Onyxcoin maintains its uptrend, it could trade at a higher level. On the other hand, if the uptrend faces a correction, Onyxcoin could fall to a lower level.