Onyxcoin (XCN): Price Rising? Don't Get Fooled!

Onyxcoin's price shows a slight recovery, but is it a trap? Dive into the key resistance levels, weak momentum, and why you might want to hold off on buying.

Onyxcoin (XCN) is showing signs of life, but don't jump in just yet! Despite a recent price uptick, several technical indicators suggest this might be a temporary bounce in a longer downtrend. Let's break down why it might be wise to resist the urge to buy.

Falling Wedge: A Bearish Trap?

Currently, Onyxcoin is trading within a falling wedge pattern, where price highs and lows are converging, forming a downward-sloping triangle. The recent price increase is essentially a bounce from the lower boundary of this wedge, which has acted as support. However, until XCN breaks out of the top of this wedge, this upward movement should be considered a temporary retracement.

100-Day Moving Average: A Resistance Line in the Sand

Another crucial factor is that Onyxcoin's price remains below its 100-day simple moving average (SMA), hovering around $0.01558. This moving average has historically acted as resistance, indicating that sellers still hold the reins. Staying below this line suggests that long-term momentum favors the downside.

$0.0159: The Major Resistance Hurdle

Even if Onyxcoin manages to climb a bit higher, a significant resistance level looms at $0.0159. This area has previously served as strong resistance and aligns with the upper boundary of the falling wedge. A rejection at this level could signal another downward leg.

RSI: Weak Momentum Confirmed

The Relative Strength Index (RSI) further reinforces the bearish outlook. Currently below 50 (around 41), the RSI indicates that the recent price increase isn't backed by strong buying momentum. This suggests that the market is still dominated by sellers, and the current uptick is merely a breather in a larger downtrend.

XCN's Wild Wednesday Plunge

Adding to the uncertainty, Onyxcoin experienced a volatile 10.98% correction during a recent Wednesday Asian trading session, plummeting from $0.01421 to $0.01319. This drop occurred without any apparent news catalyst, likely driven by broader crypto market weakness and a technical retest of key support. While it rebounded slightly, immediate resistance sits at $0.01380.

The DAO Vote Wildcard

Don't forget about the upcoming DAO votes, which could potentially double staking rewards. This could either provide short-term price support or trigger another wave of profit-taking. It's a precarious situation, to say the least!

The Verdict: Patience is Key

While the recent uptick in Onyxcoin's price might seem tempting, the overall technical picture leans bearish. Onyxcoin remains trapped in a falling wedge, trades below its 100-day moving average, and faces strong resistance around $0.0159. A confirmed breakout above the wedge and the moving average is necessary before considering a bullish stance.

So, should you buy? Nah, not yet. Waiting for confirmation is the name of the game. Until then, this might just be another pause in a longer downtrend. Don't get rekt trying to catch a falling knife!