Onyxcoin has emerged as a top performer in the cryptocurrency market, with a significant price surge of 135% in just three days. This explosive growth has made it the hottest trending asset on CoinMarketCap, with a surge in trading volume of 260% in the past 24 hours. However, technical indicators suggest that the price of XCN may be due for a cool-off soon, as the RSI has entered the overbought zone and the OBV is facing resistance near 91 billion.
Despite the potential for a price stalling or retracement, bulls could extend the rally to $0.02 if the OBV clears the overhead hurdle. This could result in a potential 25% gain for investors. However, a price rejection at this level could lead to a drop to the 200 DMA, which has historically stopped previous plunges. At the same time, data from Santiment indicates that there is currently low selling pressure from profitable holders, suggesting that there may be limited room for further upward movement.
The rally in Onyxcoin is being driven by strong spot and derivatives demand, as evidenced by rising CVD Spot and Open Interest rates. This indicates a more stable and sustainable rally compared to one driven purely by leverage. While the asset could potentially extend its gains to $0.023, technical indicators suggest a potential price reversal and cool-off in the near future. It will be important for investors to closely watch these indicators and market trends to make informed decisions about their investments in Onyxcoin.
Overall, Onyxcoin’s recent price surge has been impressive, but caution is advised as technical indicators point towards a potential price reversal. With strong demand and low selling pressure, the asset could continue to push higher in the short term. Investors should stay informed and monitor market conditions closely to navigate the uncertainties of the cryptocurrency market.
