Onyxcoin Surges 300% in Hours, Bulls Charge Ahead Despite Overbought Signals

Onyxcoin, a cryptocurrency that has been gaining traction in the market, has recently shown significant price movement on the hourly chart. The coin's price has been on a consistent upward trend, currently hovering around the $0.045 mark. This follows a substantial rally from the $0.01 region earlier in the week, representing a notable gain of over 300%. The chart reveals a breakout from key resistance levels, which have now flipped to support, indicating strong bullish sentiment.

The use of Heikin Ashi candles in the chart smooths out price noise and confirms that the bullish momentum is intact. The candles are predominantly green, reflecting consistent buying pressure with minimal retracements. This pattern highlights the market's confidence in Onyxcoin as it continues to climb.

The Relative Strength Index (RSI), a key momentum indicator, stands at 81.20, placing Onyxcoin in the overbought territory. Historically, an RSI above 70 signals overbought conditions, which could lead to a short-term pullback or consolidation as traders take profits. However, strong momentum assets can remain overbought for extended periods during a rally, as seen in Onyxcoin’s case. Additionally, the RSI’s behavior indicates a divergence while price is making higher highs, RSI’s peaks are plateauing. This could signal waning momentum, which traders should monitor closely. If the RSI starts declining further, it may confirm a short-term correction.

Onyxcoin’s chart highlights several critical support and resistance zones. The primary support lies at $0.030, marked by the most recent consolidation before the breakout. This level has historically served as a launchpad for further gains and is expected to provide strong buying interest in case of a retracement. On the upside, resistance is visible around $0.050, where the price has recently faced difficulty breaking through. This psychological level could act as a ceiling in the short term. A decisive break above $0.050 would open the door to further gains, with the next target at $0.065 based on the Fibonacci extension levels.

Several factors could influence Onyxcoin’s price in the coming hours and days. The broader cryptocurrency market’s sentiment will play a significant role, with a continuation of Bitcoin’s upward momentum potentially spilling over to altco