Onyxcoin Fails Breakout Despite Whales Accumulating 368 Million XCN

Onyxcoin (XCN) has been struggling to break its downtrend for over a month despite a notable surge in whale activity.

While whales have been accumulating XCN in large quantities, the lack of broader bullish market cues has prevented a significant price reversal. The altcoin continues to face downward pressure.

Onyxcoin Whales Take Charge

Whale investors holding between 10 million and 100 million XCN have been actively accumulating the token. Over the past three days, these investors have purchased over 368 million XCN, valued at $5.6 million. This shows that whale investors are confident in Onyxcoin’s eventual price recovery, accumulating at lower prices to capitalize on future gains.

The large-scale purchases demonstrate investor optimism, even as the broader market remains relatively bearish. The whales’ actions suggest that they believe the altcoin’s price will rise once the market sentiment shifts, but for now, the general investor sentiment appears mixed.

XCN Whale Holding. Source:  Santiment

Onyxcoin’s network growth, an indicator of new addresses and transactions, is currently at a six-week low. This suggests a decline in new users and investors, pointing to Onyxcoin losing traction in the broader crypto market.

The current lack of network activity is a concern, as it signals that new entrants are not interested in purchasing or using the token at present.

The stagnation in network growth implies that while whales remain confident in XCN’s future, the altcoin is struggling to attract fresh retail investors. Without an influx of new investors, Onyxcoin faces challenges in sustaining momentum and reversing the downtrend.

XCN Network Growth. Source:  Santiment

XCN Price Needs A Push

At the time of writing, Onyxcoin’s price stands at $0.0152, with the altcoin stuck below its trend line for the past month. Despite multiple attempts to break out of this downtrend, XCN has yet to succeed. The resistance at $0.0150 continues to hold firm, creating a barrier to any significant price gains.

The recent whale activity could be a key factor in determining whether Onyxcoin can reverse its current trend. A successful breach of the trend line, particularly if $0.0182 is flipped into support, could push the altcoin towards $0.0237. If investor confidence strengthened, this would mark a strong recovery.

XCN Price Analysis. Source:  TradingView

However, if new investor sentiment remains weak and retail interest continues to decline, the altcoin could fall through the support of $0.0150. This would push XCN towards $0.0127, invalidating the bullish outlook.

The future of Onyxcoin depends heavily on whether it can attract broader market support and capital.