Onyxcoin (XCN) Undergoes Significant Decline
Onyxcoin (XCN) has been on a downward spiral over the past month, shedding 42% of its value. This sharp decline has pushed it into undervalued territory, often seen as a buy signal for traders looking to capitalize on discounted prices.
However, despite its undervaluation, on-chain metrics suggest the downtrend may not be over.
Onyxcoin Flashes Buy Signal, But Risks Abound
BeInCrypto’s analysis of XCN’s market value to realized value (MVRV) ratio, based on a 7-day and 30-day moving average, confirms that the token is currently undervalued. Santiment’s data shows these metrics at -8.49% and -24.87%, respectively, at press time.
XCN MVRV Ratio.
An asset’s MVRV ratio tracks whether it is overvalued or undervalued by measuring the relationship between its market value and its realized value. When this ratio is positive, its market value is higher than the realized value, suggesting it is overvalued. Conversely, when the ratio is negative, like XCN’s, the market value is lower than its realized value, indicating it is undervalued compared to original prices paid by traders and investors.
Historically, negative MVRV ratios have been considered buy signals. However, XCN’s steady decline has weakened bullish sentiment among holders, many now betting on further losses. This has led to a feedback loop of continued sell-offs, increasing downward pressure on the coin’s price, reflected in the persistent negative funding rate of -0.022% at press time.
XCN Funding Rate.
The funding rate represents periodic payments exchanged between long and short traders in perpetual futures markets. A negative funding rate indicates bearish sentiment as more traders speculate on decreasing prices.
Moreover, XCN’s plummeting open interest confirms a weakening demand for the altcoin, with the metric at $11 million, a 14% drop in the past 24 hours.
XCN Open Interest.
Open interest measures the total number of outstanding derivative contracts like futures or options that have not been settled. A decline suggests traders are closing their positions, indicating weakening market interest and hinting at a potential price decline.
XCN Price Prediction: Rebound or Further Drop?
On a daily chart, XCN’s Relative Strength Index (RSI) indicates falling demand for the altcoin, currently at 45.55 and in a downward trend. The RSI helps measure overbought or oversold conditions, with values above 70 suggesting overbought, and below 30 suggesting oversold conditions that may lead to a rebound.
XCN’s RSI at 45.55 signals weakening bullish momentum as sellers gain control. If this trend continues, the token’s price could drop to $0.011. Conversely, if demand increases, it could rally to its year-to-date high of $0.049.
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