- The short-term holders were sitting on sizable gains, and this could lead to some selling pressure from profit-taking
- The swift reaction from the 78.6% Fibonacci level meant that an XCN bullish structure shift could materialize in the coming days
Onyxcoin [XCN] has climbed higher by 16% in the past 24 hours and its daily trading volume is up by 12%.
During the recent market-wide sell-off, Onyxcoin lost 30% when it reached the lows at $0.018. However, it has bounced 68% from those lows in the 30-hours since.
This volatility is a trader’s paradise, and the strong bullish reaction from the lows could be a sign of underlying strength. What have XCN bulls got up their sleeves?
Does Onyxcoin present a good buying opportunity?
In the second half of January, Onyxcoin saw a strong surge in prices and on-chain activity.
This rally was used to plot a set of Fibonacci retracement levels. The recent price drop saw the 78.6% level at $0.0194 retested.
The strong bounce of nearly 70% since then was a good sign for investors. The quick reaction showed bullish conviction. The 78.6% level was tested, and the price jumped away.
The fair value gap at $0.0282 was the next short-term support zone that bulls are expected to defend.
The H4 RSI was back above neutral 50, indicating upward momentum. The OBV also began to trend higher, reflecting increased buying volume.
However, the market structure was bearish, with $0.0347 being the recent lower high for the price to overcome. Such a move would flip the structure to a bullish one.
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Author: Akashnath S
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