Onyxcoin (XCN) Bounces 68% From Lows, Presents a Good Buying Opportunity?

Onyxcoin [XCN] has climbed higher by 16% in the past 24 hours and its daily trading volume is up by 12%.

Onyxcoin [XCN] price analysis: Is buying the dip still a good strategy?

After losing 30% during the recent market sell-off and hitting lows of $0.018, XCN has bounced an impressive 68% from those levels over 30 hours.

With daily gains of 16% and a 12% uptick in trading volume, XCN is rallying rapidly.

The token’s price dropped to as low as $0.017 on 15 March during the recent market sell-off. After recovering from those lows, the token rallied to highs of $0.031 by press time.

However, further gains were capped by the recent market structure, which showed lower highs.

The recent price drop saw the 78.6% Fibonacci retracement level at $0.0194 get retested.

Following this retest, the token’s price bounced nearly 70% and was trading at $0.032 at press time.

This reaction highlighted bullish conviction, with the 78.6% level being tested and the price quickly bouncing away from it.

The next short-term support zone was highlighted by the Fair Value Gap at $0.0282, which bulls were likely to defend.

On the H4 chart, the RSI was back above neutral 50, indicating upward momentum.

The OBV also began to trend higher, reflecting increased buying volume.

However, the market structure remained bearish, with $0.0347 being the recent lower high for the price to overcome.

Such a move would flip the structure to a bullish one.

The 7-day MVRV was slightly negative, indicating losses for short-term holders.

However, the 30-day MVR厖 was strongly positive at 51.39%.

Therefore, most of the short-term holders were in profit, and this could entice them to take profits and contribute to the selling pressure.

Finally, the Network Value to Transaction (NVT) metric highlighted whether a token was overvalued.

The NVT was calculated by dividing the XCN market cap by its daily circulation.

A relatively high ratio indicated the network was expensive compared to the value being transmitted on the network.

This was the case in December and early January for XCN. However, increased activity meant the token was not overvalued at press time, according to the NVT.