beincrypto.com
Onyxcoin ($XCN) has plunged by 15% in the past week and is poised to extend its decline as selloffs strengthen.
Adding to the bearish outlook, a key technical indicator is on the brink of forming a death cross, a signal that often precedes deeper price declines.
$XCN At Risk of Sharp Decline
BeInCrypto’s assessment of the $XCN/USD one-day chart reveals the potential formation of a death cross on its Moving Average Convergence Divergence (MACD).
This bearish pattern emerges when an asset’s MACD line crosses below the signal line, signaling a shift from bullish to bearish momentum. Such a pattern often precedes significant price drops, especially when accompanied by weakening volume and broader market uncertainty.
At press time, $XCN’s MACD line is poised to cross below its signal line. If confirmed, the death cross would indicate intensifying selling pressure and signal the start of a prolonged downtrend.
Moreover, $XCN’s double-digit decline over the past week has pushed its price towards its 20-day exponential moving average (EMA). This key moving average measures an asset’s average price over the past 20 days, giving more weight to recent prices.
$XCN’s dip toward the 20-day EMA suggests that bulls are losing control, while sellers continue to dominate the market. If $XCN’s price fails to hold above the key moving average, it may trigger a deeper correction.
$XCN Bears Take Charge
$XCN’s looming MACD death cross and its potential decline below the 20-day EM signals a strong shift toward bearish territory. These indicators suggest that bearish momentum is gaining traction, with buyers showing little strength to reverse the current downtrend.
If the decline continues, $XCN’s price could fall to $0.0075.
On the other hand, a spike in new demand for $XCN will invalidate this bearish outlook. In that case, the token’s price could reverse its ongoing decline, break above $0.0174, and climb to $0.023.