Onyxcoin (XCN) Plummets 10% Amid Bearish Sentiment, Short Bets Surge

Onyxcoin (XCN) has experienced a significant decline in its price, dropping by 10% over the past week. This downward trend is accompanied by a decrease in active addresses and an increase in short bets, indicating a bearish sentiment in the market.

Since early March, the number of unique addresses completing transactions involving XCN has steadily declined. On March 3, there were 2,673 unique addresses, but this number dropped to 1,044 by March 18. This decline in active addresses suggests a loss of interest in the asset and reduced network participation, reinforcing the bearish outlook for XCN.

Additionally, the month has seen a surge in demand for short positions, as reflected by the altcoin’s predominantly negative funding rate. An asset’s funding rate is a periodic fee exchanged between its long and short traders in perpetual futures contracts. When the funding rate is mostly negative, it indicates that short sellers dominate the coin’s futures markets. This rising demand for XCN shorts highlights the market’s bearish outlook, with sellers maintaining control and limiting any potential short-term recovery.

The token’s Chaikin Money Flow (CMF) supports this bearish outlook. At press time, the momentum indicator is below zero at -0.19. The CMF indicator measures fund flows into and out of an asset. When its value is negative, selling pressure outpaces buying activity, indicating the likelihood of a further price decline as demand remains weak. In this scenario, XCN’s price could slip to $0.0075. Conversely, if buyers regain market control, the token’s price could rocket toward $0.022.

In summary, Onyxcoin (XCN) is facing strong selling pressure due to a decrease in active addresses and an increase in short bets. The bearish sentiment is supported by the token’s negative funding rate and CMF indicator, suggesting a potential further decline in price. However, if buyers regain control, there is potential for a significant price increase.