Onyxcoin (XCN) Price at Make-or-Break Support Level: Risks Another 70% Dip

Onyxcoin price saw a surge in January. This spiked XCN token by close to 2,000% before entering a period of steady decline.

Onyxcoin (XCN) price has shown a significant surge in January, spiking the XCN token by nearly 2,000%. However, following this rally, Onyxcoin price has been steadily decreasing. In the past few weeks alone, the token has seen a 70% retracement from its peak.

Examining the XCN chart on the daily timeframe, we can observe that the token is approaching a key support level at $0.01007. This point is crucial as it's a zone where buying pressure might outpace selling pressure, potentially triggering a rebound.

The $0.01007 support also coincides closely with the 0.786 Fibonacci retracement level, making it an interesting area for traders. Fibonacci retracement levels are often used by traders to identify important price support and resistance levels.

If there's a bounce from this support and XCN manages to rally, traders should keep an eye on several Fibonacci resistance levels. The 0.618 level at $0.01994 would present the first resistance, followed by the 0.5 level at $0.02551.

More significant resistance could be encountered at the 0.382 level ($0.03107) and the 0.236 level ($0.03796), potentially slowing or halting the upward momentum.

Of course, Bitcoin price action and broader market sentiment will influence the Onyxcoin price trajectory in the coming weeks. A positive shift in the crypto market could provide the needed push for XCN to stage a meaningful recovery from its current levels.

Conversely, if market sentiment remains low, we might see XCN enter a period of sideways consolidation, a test of patience for investors hoping for a swift rebound.

The most concerning scenario for XCN holders would be a break below the $0.01007 support level. If this critical support fails to hold, Onyxcoin price could experience another substantial decline, falling to around $0.00276—the price level observed before January’s rally began.

Such a move would represent approximately another 70% drop from the current key support level, effectively erasing all gains made during the January surge.

What to Watch

Investors should keep a close eye on the price action around the $0.01007 support level. A strong bounce with increasing volume could signal a potential reversal. Conversely, a breakdown with high volume might confirm further downside.

Also, watch for resistance at the key Fibonacci levels if a rebound happens. Pay attention to the levels around $0.01994 and $0.02551, as these may prove difficult to breach.

Finally, remember that Bitcoin performance will likely dictate the broader market direction, making it an essential indicator for XCN’s future price movement as well.