Onyxcoin (XCN) Has Recorded a Steep Drop of Nearly 14% This Week

Onyxcoin (XCN) price slid nearly 14% this week as the altcoin failed to break past a critical resistance level and triggered a cascade of liquidations.

At the time of writing, XCN is trading at $0.0182, slipping below the local support of $0.0187.

This puts the token on course for a steeper decline towards the next major Fibonacci level, placed at $0.0165.

The weakness in XCN has been unfolding since the MACD (Moving Average Convergence Divergence) indicator registered a bearish crossover around 72 hours ago.

This reversal has also been noted by real-time liquidation data, which shows that nearly $2 million worth of long positions have been liquidated.

That figure represents roughly 16% of the $12 million total open interest for Onyxcoin.

The size of these liquidations is significant, especially considering XCN’s relatively low market cap and trading volume.

It suggests that a sizeable portion of retail traders were caught off guard by the sudden shift in momentum, further intensifying the negative sentiment.

If the bearish conditions continue, we could see even more liquidations as leveraged traders are forced to close their positions.

Key levels to watch

As XCN trades below the $0.0187 local support and the key $0.0214 resistance, the next major downside target is $0.0165.

This support level is critical for preventing further losses. A breakdown below $0.0165 could lead to a new wave of long position liquidations, extending the current downtrend.

The price failure comes after two attempts in April to reclaim the $0.0214 resistance.

Both were met with rejection, confirming that the level is acting as a strong ceiling in the current market environment.

Until XCN can retest and successfully break above this mark, the bias is likely to remain bearish.

Despite the recent downturn, there is still a narrow path to recovery.

If Onyxcoin can manage to reclaim the $0.0187 level as support and consolidate above it, the token could stage another attempt to challenge the $0.0214 barrier.

A successful breakout above that level would invalidate the current bearish trend and potentially trigger a short-term bullish reversal.

However, broader market sentiment will also play a role. With Bitcoin and Ethereum showing signs of consolidation and risk appetite among altcoin investors.