Onyxcoin price has been struggling to recover after an explosive start earlier this year. Back in January, XCN saw an unbelievable rally where it jumped over 1,500% in just two weeks. This massive move made a lot of people believe Onyxcoin could be the breakout coin of the current cycle. But since then, the excitement has faded, and the price has mostly been moving lower.
When you look at the first chart, you can see how XCN price exploded upwards in January, reaching as high as $0.05, but then it dropped sharply and kept drifting down. The coin has been stuck inside a falling wedge pattern since April.
This pattern shows the price bouncing between two downward-sloping trendlines that are getting closer together. Right now, XCN price is near the lower part of that wedge, suggesting it could still dip another 10% to 15% before touching support again.
Falling Wedge Pattern on XCN Price Chart Why the XCN Price Looks Weak Right Now
If you check the second chart, you’ll notice something interesting. Even though the price has been falling inside the wedge, there’s also a pattern, that might want to form a trendline formation, running underneath everything.
This upcoming trendline formation goes all the way back to January, and XCN has tested this line twice. Each time it touched the line, it managed to bounce a bit. But with every bounce, the upward moves have been weaker, and the price keeps making lower highs.
Lower-High and Higher-Low Pattern on XCN Price Chart
This shows that Onyxcoin’s bullish momentum is fading. Even if it does bounce near the current support level, the strength of those bounces has been getting weaker over time. This makes it hard to trust that the trendline will keep holding up or that any bounce will turn into a proper reversal.
Is Now the Right Time to Buy the XCN Dip?
A lot of people in crypto believe in buying the dip, but timing is everything. Based on the technical signals from these charts, it doesn’t look like now is the right time to put $1,000 into Onyxcoin. The price action is still stuck in a downward trend, and there aren’t any clear signs of a breakout like we’re seeing with some other altcoins at the moment.
For the price to truly turn around, XCN would need to break out of the falling wedge to the upside with strong volume, or there would need to be a big fundamental event, like new partnerships, a major exchange listing, or a big network upgrade that changes the narrative. Technical analysis alone can’t predict these kinds of events.
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Right now, the charts show that XCN price is drifting lower with weak momentum. Although the broader trendline from January gives some hope for a potential bounce, the repeated weak recoveries mean the risk is still high. Based on what we see technically, it may not be wise to invest $1,000 in Onyxcoin at this moment, unless you are prepared for more downside or you believe a fundamental catalyst could soon arrive.
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The post Why Investing $1,000 in Onyxcoin (XCN) Right Now Could Be a Bad Move appeared first on CaptainAltcoin.
