Onyxcoin (XCN) Price Plummets by 10% Amid Rising Bearish Sentiment

Onyxcoin (XCN) has been facing a tough week, with its price plummeting by 10% amid rising bearish sentiment and waning investor interest.

Onyxcoin (XCN) has had a rough week, with its price dropping 10% amid rising bearish sentiment and waning investor interest.

The altcoin’s price has struggled to maintain any upward momentum, largely due to declining active addresses and a surge in short positions, signaling growing skepticism from the market.

Decline In Active Addresses Signals Diminishing Interest

Onyxcoin’s daily active addresses have sharply fallen over the past few weeks, marking a significant decline in network activity.

On March 3, there were 2,673 unique addresses actively engaging with XCN. However, by March 18, this number had dropped to just 1,044.

This dramatic decrease indicates a reduction in demand for Onyxcoin and a potential loss of interest from traders and investors.

As less users are engaging with the coin, its price has struggled to maintain any bullish momentum, contributing to the overall downward trend in XCN’s market performance.

Moreover, this drop in active addresses is a key indicator of reduced network participation, which is often associated with bearish market conditions.

As fewer users engage with the coin, its price struggles to maintain any bullish momentum, keeping the token in a downward trend.

Surge In Short Bets Highlights Bearish Sentiment

Further adding to the negative outlook for XCN is the growing dominance of short positions in its futures markets.

According to on-chain data, Onyxcoin’s funding rate has been consistently negative throughout March, signaling that more traders are betting against the coin.

In perpetual futures contracts, a negative funding rate indicates that short sellers are in control, receiving payments from long holders, which points to a pessimistic market sentiment.

This surge in short bets reflects widespread skepticism about XCN’s potential for a short-term recovery. The increasing selling pressure from these traders is limiting any chances for the coin to bounce back, keeping its price under pressure.

Chart: Glassnode

Selling Pressure Heightens With Negative Chaikin Money Flow

The selling pressure on XCN is evident in its Chaikin Money Flow (CMF) indicator, which is currently sitting at -0.19.

The CMF is a momentum indicator that measures the flow of money into and out of an asset. A negative CMF suggests that selling activity is outpacing buying demand, reinforcing the bearish sentiment surrounding the token.

With the CMF in negative territory, the chances of a significant price recovery for XCN appear slim in the near term. This indicator points to the likelihood of further price declines, especially as investor interest remains weak and selling pressure continues to mount.

If the bearish momentum persists, XCN could test further support levels, with $0.0075 identified as the next critical price point to watch. A break below this level could trigger even deeper declines, extending the ongoing downtrend for Onyxcoin.

On the other hand, if the sentiment were to shift and buying activity picks up, XCN could see a recovery toward $0.022. However, for this to happen, investor confidence would need to strengthen, and the negative momentum indicators would need to reverse.

Overall, the market signals a bearish outlook for Onyxcoin, with declining active addresses, surging short positions, and negative Chaikin Money Flow all pointing to sustained selling pressure and weak investor interest.