Onyxcoin (XCN) Has Plunged by 15% in the Past Week and Is Poised to Extend Its Decline as Selloffs Strengthen

Adding to the bearish outlook, a key technical indicator is on the brink of forming a death cross, a signal that often precedes deeper price declines.

Onyxcoin (XCN) has dropped by 15% over the past week and is set to continue its downward trajectory as selloffs intensify.

Furthermore, a key technical indicator is nearing the formation of a death cross, a technical pattern that usually signals deeper price declines.

As BeInCrypto's technical analysis highlights, the XCN/USD one-day chart shows that the Moving Average Convergence Divergence (MACD) indicator is about to create a death cross.

This bearish pattern arises when an asset's MACD line crosses below the signal line, indicating a change from bullish to bearish momentum, which is often followed by substantial price drops, especially with low trading volume and broader market volatility.

At the time of writing, Onyxcoin's MACD line is on the verge of intersecting its signal line from the bottom. If this occurs, it will mark the MACD death cross, indicating strong selling pressure and the beginning of a sustained downtrend.

Additionally, XCN's more than 10% decrease over the past week has brought its price close to the 20-day exponential moving average (EMA). This key moving average tracks an asset's average price over the last 20 days, giving greater weight to recent prices.

Onyxcoin's decline toward the 20-day EMA suggests that bulls are losing strength while sellers maintain control of the market. If the price fails to stay above this crucial moving average, it could trigger a deeper correction.