An analysis of Onyxcoin (XCN) against USD on the 4-hour timeframe shows an interesting development. Technical indicators including the 50-day Simple Moving Average (SMA) and 200-day SMA suggest a complex scenario unfolding for this cryptocurrency.
XCN price has reached a crucial horizontal support zone at around $0.15 and $0.14. These have historically served as a strong demand area. This support level appears to be holding for now. The scenario potentially sets the stage for a rebound if buyers continue to show interest at these prices.
What you'll learn 👉
Some Obstacles That Could Prevent XCN Price Rally
However, several obstacles stand in the way of an immediate rally. Most notably, a descending trendline has been acting as persistent resistance for some time. For XCN to establish a meaningful rally, it needs to break above this trendline with conviction. Such a breakout would likely signal a shift in momentum toward a bullish reversal pattern.
The 50-day SMA currently sits above the price, creating short-term bearish pressure. Similarly, the 200-day SMA looms above as a longer-term resistance barrier. Any recovery attempt will first need to overcome these moving averages, which typically function as dynamic resistance levels in technical analysis.
The Bitcoin Factor
Bitcoin price movement remains a significant external factor for XCN prospects. If Bitcoin continues its downward trajectory, XCN may struggle to overcome its resistance levels and could instead consolidate at current support levels for an extended period.
Conversely, if Bitcoin stabilizes, XCN might find more favorable conditions for a potential rebound.
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The short-term outlook for XCN points toward sideways consolidation unless a definitive breakout materializes. For a bullish scenario to develop, XCN needs to clear both the descending trendline and the 50-day SMA to confirm an uptrend.
The bearish risk remains that continued Bitcoin weakness could push XCN below its current support, potentially triggering further price declines. Traders should keep a close eye on Bitcoin’s price stability and watch for any breakout above both the 50-day and 200-day SMAs as potential confirmation of bullish momentum for Onyxcoin.
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