What Next After 22% Price Drop?
Onyxcoin (XCN) extended its failed winning streak, falling another 22% in the past 24 hours. Now, it is at a 30-day low of $0.015.
With bearish bias against Altcoin, its price may continue to decline. This analysis explains why.
Onyxcoin traders remain bearish
Continuous Negatives of XCN The funding rate is the main indicator of bearish bias. According to Coinglass, Altcoin’s financing rate has been mostly negative since December 9. At press time, this is -0.17%.
Funding rate is a regular fee between permanent traders futures Contract to keep prices consistent with spot markets. When negative, short traders will pay long-term traders. This suggests that most XCN traders are bearish and expect further price declines.
In addition, XCN’s open interest has been on a downward trend, highlighting the poor demand for altcoins from market participants. According to the writing, it costs $6 million, according to Coinglass data, marking its lowest level in 30 days.
Open interest on an asset measures the total number of outstanding derivative contracts (such as futures or options) that have not yet been resolved. As in the case of XCN, when it is with the price of an asset, it indicates that market participation is weakened and traders close their positions instead of opening up new positions.
This shows XCN price drops It is driven by liquidation or profitability rather than fresh short selling, thus reducing the possibility of a short-term rebound.
Bearish clouds are imminent on XCN
On the daily chart, XCN trades below the leading spans A and B of its Ichimoku cloud indicator. This momentum indicator measures the market trend of an asset and determines potential support/resistance levels. When assets are below this cloud, the market is in a downward trend.
In this case, the cloud is the dynamic resistance level of XCN. As long as the price stays under the cloud and continues to decline, it confirms its possibility of continuing to decline in price. If this trend persists, XCN’s value may drop to $0.011.
On the other hand, if the purchase activity is Can rocket to $0.022.
Disclaimer
and Trust Project Guide, this price analysis article is for informational purposes only and should not be considered financial or investment advice. Beincrypto is committed to accurate and impartial reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our terms and Conditions,,,,, Privacy Policyand Disclaimer Updated.
