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Onyxcoin (XCN) Price Stabilizes After 78% Surge, Awaiting Resistance Break

Published
Nikola Lazic
Published
By Nikola Lazic
Edited by Ryan James

Key Takeaways

  • Descending channel formation signals potential breakout.
  • RSI shows a neutral to bullish momentum shift.
  • Critical Fibonacci support and resistance levels identified

Onyxcoin (XCN) has recently displayed complex price dynamics within a descending channel structure, as observed in both the 4-hour and 1-hour charts.

This analysis delves into the current market setup, leveraging Elliott Wave Theory, Fibonacci retracement levels, and RSI momentum to gauge potential price trajectories.

XCN Price Analysis

The 4-hour chart reveals XCN in a corrective phase following a significant impulsive rally that peaked within Wave (v) at $0.0488 on Jan. 26.

The price structure has formed a descending channel, typically a bullish reversal pattern. 

The Elliott Wave count suggests wave (v) completion, with subsequent corrective waves progressing within the channel. 

XCN price analysis
XCNUSD in a descending channel| Credit: Nikola Lazic/TradingView 

Currently, XCN is hovering around the 0.382 Fibonacci retracement level ($0.0312), a critical support zone historically providing strong reactions.

The Relative Strength Index (RSI) on the 4-hour timeframe indicates neutral conditions, oscillating around the midpoint without showing strong overbought or oversold signals.

This reflects market indecision, but the narrowing channel structure suggests that a breakout—either upward or downward—is imminent. 

A sustained move above the upper trendline could confirm a bullish reversal, targeting the 0.236 Fibonacci level ($0.0379).

Failure to hold support at the 0.5 Fibonacci level ($0.0257) may lead to deeper corrections.

XCN Price Prediction

On the 1-hour chart, XCN shows a complete (a-b-c) correction that started after the peak on Wave (v).

The correction concluded with Wave (c) breaking below the descending channel’s lower boundary at $0.02030 (0.618 Fibonacci retracement), reaching $0.0182 on Feb. 3. 

This was a brief spike, but the price found support again, causing a 78% recovery. It exhibited impulsiveness, but further confirmation is needed as we saw three waves out of the potential five-wave move. 

XCN
XCNUSD two outcomes ahead | Credit: Nikola Lazic/TradingView 

The Elliott Wave count suggests that a minor impulse wave (i)-(ii)-(iii)-(iv)-(v) is forming, with wave (iii) recently reaching resistance near $0.03120 (0.382 Fibonacci retracement). 

The price appears to be in a corrective wave (iv), with potential support around $0.02575 (the 0.5 Fibonacci level). It consolidates below the descending resistance, with two likely outcomes ahead. 

If bullish momentum persists, wave (v) could push XCN towards the $0.03795 level, coinciding with the 0.236 Fibonacci retracement.

Alternatively, if the price breaks below the channel’s lower boundary, the next support lies around $0.02030 (0.618 Fibonacci retracement).

In the bearish scenario, it will mean that the correction is prolonged by two more sub-waves, out of which its latest rise is wave D from the ABCDE count.

Its next downtrend will conclude this correction after reaching a lower low for the final descending support interaction. 

The RSI on this timeframe suggests weakening bearish momentum, hinting at a potential reversal of buying pressure, which is why our primary outlook is bullish. 

Key Levels to Watch:

  • Immediate Resistance: $0.03120 (0.382 Fibonacci retracement)
  • Key Support: $0.02575 (0.5 Fibonacci retracement)
  • Critical Support: $0.02030 (0.618 Fibonacci retracement)
  • Short-Term Target for Wave (v): Above $0.03795 if bullish breakout confirms
  • Invalidation Zone: Below $0.02030, indicating further downside risk
Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis. Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.
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