Onyxcoin (XCN) Price Tanks 10% as Bearish Sentiment Grips the Market

Onyxcoin (XCN) has maintained its downward trajectory, plummeting by 10% over the past week as bearish sentiment grips the market.

Onyxcoin (XCN) has continued its downward spiral, plummeting by 10% over the past week amid strong bearish sentiment.

As more traders are turning away from the altcoin, its active address count has seen a sharp fall, signaling a loss of interest in the asset and low network participation.

XCN Struggles as Short Sellers Take Control

Since early March, Santiment’s data has shown an aggressive fall in XCN’s daily active address count.

On March 3, 2,673 unique addresses completed at least one transaction in the Onyxcoin token. But by March 18, this figure had fallen to 1,044.

This decline highlights waning network activity on Onyxcoin and reduced demand for its altcoin, Bottling up the bearish sentiment.

March has also seen a significant rise in the demand for short positions, as evidenced 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, short sellers are said to be in control of the coin’s futures markets.

The rising demand for XCN shorts showcases the market’s bearish outlook, with sellers keeping a strong hold and limiting any potential short-term recovery.

XCN Faces Strong Selling Pressure

The token’s Chaikin Money Flow (CMF) supports this bearish outlook. At press time, the momentum indicator is below the zero level at -0.19.

The CMF indicator measures fund flows into and out of an asset. When its value is in the negative territory, selling pressure outpaces buying activity. This indicates the likelihood of a further price decline as demand remains weak. In this scenario, XCN’s price could slip to $0.0075.

Conversely, the token’s price could quickly recover toward $0.022 if buyers manage to regain control.