Onyxcoin price drops 14% as $2 million in liquidations hit XCN traders

• The MACD indicator shows a bearish crossover, confirming a trend reversal.
• Next major support lies at $0.0165, with risk of further losses.
• Recovery is possible if XCN reclaims $0.0187 and retests $0.0214.

Onyxcoin (XCN) has recorded a steep drop of nearly 14% this week, signalling a sharp turn in market sentiment after the altcoin failed to break past a critical resistance level of $0.0214.

The failed breakout attempt, coupled with a bearish technical signal, has ended a six-week upward trend for the token.

At the time of writing, XCN is trading at $0.0182, having slipped below the local support of $0.0187.

Source: CoinMarketCap

This weakness has triggered a cascade of liquidations, putting further pressure on Onyxcoin’s short-term outlook.

The recent downturn follows a period of relative optimism, during which XCN attracted renewed investor attention amid rising on-chain activity.

However, its inability to hold above key price levels suggests growing caution among traders.

Traders liquidated as XCN fails to hold support

The shift in momentum for XCN was first flagged by the MACD (Moving Average Convergence Divergence) indicator, which registered a bearish crossover around 72 hours ago.

This reversal has been confirmed by real-time liquidation data, which shows that nearly $2 million worth of long positions have been liquidated.

That figure represents roughly 16% of the $12 million total open interest for Onyxcoin.

These liquidations are significant given XCN’s relatively low market cap and trading volume compared to major assets.

The size of the liquidations suggests that a sizeable portion of retail traders were caught off guard by the sudden shift, intensifying negative sentiment.

If bearish conditions persist, further liquidations could push the token even lower, as leveraged traders rush to exit their positions.

Technical levels signal more downside for XCN

With XCN now trading below both the $0.0187 local support and the key $0.0214 resistance level, the next major downside target is $0.0165.

This support level is critical for preventing further losses. A decisive breakdown below $0.0165 could lead to a new wave of long position liquidations, extending the current downtrend.

The price failure comes after two attempts in April to reclaim the $0.0214 resistance.

Both were met with rejection, confirming that the level is acting as a strong ceiling in the current market environment.

Until XCN can retest and successfully break above this mark, sentiment is likely to remain bearish.

Recovery hinges on reclaiming $0.0187

There is still a narrow path to recovery. If Onyxcoin can reclaim the $0.0187 level as support and consolidate above it, the token could stage another attempt to challenge the $0.0214 barrier.

A successful breakout above that level would invalidate the current bearish trend and potentially trigger a short-term bullish reversal.

However, broader market sentiment will also play a role. With Bitcoin and Ethereum showing signs of consolidation and risk appetite fluctuating among altcoin investors, Onyxcoin may need more than technical support to stage a rebound.

For now, traders are watching closely to see whether $0.0165 holds, or if further downside is on the cards.