Onyxcoin rebounds 27% after deep correction – Can XCN bypass $0.0075?

Onyxcoin [XCN] has rallied 4.4% in 24 hours and 27% over the past week. The token price gains came after a multi-week retracement from $0.013 to $0.0046.

At the beginning of the year, the altcoin 217% within a week, rallying from $0.0041 to $0.013.

It spent the rest of January and the first week of February retracing this sizeable move.

At the same time, Bitcoin [BTC] and the wider crypto market also saw a downturn in momentum.

The past week has been bullish for Bitcoin and many altcoins. This shift in short-term sentiment might have brought attention and capital to XCN. Can the bulls keep the rally going?

Warning signs from volume indicators

Source: XCN/USD on TradingViewThe A/D indicator maintained its steady decline in recent months. The CMF was still at -0.06 despite the price bounce. Both the indicators showed that there has been no sustained buying pressure driving the past week’s rally.

This was a warning to swing traders that Onyxcoin might not be able to keep going higher. High buying pressure in the coming days would change this cautious outlook toward a more bullish view.

The price action perspective offered a more encouraging signal for buyers. The strong rally in January and the subsequent retracement were part of a healthy market.

Onyxcoin even saw a month of consolidation near the $0.005 lows before the recent breakout.

A strong rally, a sizeable retracement and consolidation before the next move is more reliable. The coin has spent time at the lows, confirming them as a steady demand zone.

The $0.0068-$0.0075 levels are the next resistances to watch out for.

Short-term XCN price trajectory

Source: XCN/USD on TradingViewIn the short-term, a retracement toward $0.0057-$0.00545 was possible.

This conclusion was drawn based on the short-term Fibonacci retracement levels. The MACD formed a bearish crossover on Sunday, signaling that momentum has slowed down.

Such a retracement would offer swing traders an opportunity to go long. This idea would be invalidated if XCN falls back below the $0.005 level, which would mean the momentum has faded.

Final Summary

• Onyxcoin spent the past two months in a deep retracement phase, but has built up steam to attempt a recovery.
• A short-term retracement toward $0.00545 is possible before the upward momentum continues.