- Key support level at $0.0182 remains at risk.
- Negative funding rate indicates rising short bets.
- The funding rate for XCN futures has recently turned negative, a signal that more traders are opening short positions.
Onyxcoin (XCN) is trading at $0.01945 at the time of writing, showing a 24-hour gain of 14%.
But this uptick has not been enough to revive investor confidence in the altcoin’s medium-term outlook.
The broader crypto market has seen some recovery, but XCN remains on a knife’s edge, struggling to hold above the key support level of $0.0182.
Source: CoinMarketCap
If this threshold is breached, the price could fall to $0.0150 — a two-week low that risks intensifying the current bearish sentiment.
The funding rate for XCN futures has recently turned negative, a signal that more traders are opening short positions.
This means that investors are betting on further price declines.
A negative funding rate typically reflects market pessimism, as shorts pay a fee to longs to maintain their positions.
With short contracts now dominating, XCN appears to be facing growing resistance from its own derivatives market.
Momentum indicators show outflows
On-chain metrics are adding to concerns. The Chaikin Money Flow (CMF) indicator, which tracks buying and selling pressure by comparing accumulation and distribution over time, remains in negative territory.
While the CMF has shown a minor upward slope, it has yet to cross the zero threshold that typically signals sustained inflows into the asset.
This is crucial because a persistently negative CMF suggests outflows are outweighing inflows, indicating that capital is leaving the XCN market.
Without consistent and strong buying activity, the token is unlikely to see a meaningful recovery.
At present, the altcoin continues to hover in a risk zone, with bearish pressure overpowering attempts at a bounceback.
Resistance stands at $0.0237
If XCN manages to stabilise at or above the $0.0182 support level, the next resistance to watch is $0.0237.
Crossing this level could reverse the current sentiment and invalidate the near-term bearish case.
However, any such reversal is unlikely without broader support from the market or a catalyst that can draw capital back into the project.
Given the weak momentum and technical signals, the burden lies on external market forces to lift XCN past this resistance.
Investor participation remains cautious, with many traders opting to wait for stronger confirmation of trend reversal before re-entering long positions.
