Onyxcoin Breaks Downtrend as XCN Jumps 22% – Continuation Depends on Key Levels

Onyxcoin (XCN) has experienced a significant price surge of over 22% in just 24 hours, breaking a prolonged downtrend after months of declining prices. This rebound is marked by a substantial increase in trading volume, particularly in derivatives, as traders regain interest. However, the market's sustainability now hinges on maintaining key support levels amidst growing leverage and cautious profit-taking among investors.

Key Takeaways

Onyxcoin (XCN) rebounded more than 22% in just 24 hours, breaking a downward trend.
Trading volume in derivatives surged nearly 400%, indicating renewed interest from traders.
The price rose above key resistance levels but faces challenges around $0.0070.
Open Interest in derivatives increased by over 61%, adding complexity to market stability.
Spot market flows showed limited demand, suggesting potential profit-taking.

Onyxcoin [XCN]

Onyxcoin's Significant Rebound

Onyxcoin (XCN) has staged a compelling comeback by surging over 22% in a single day, indicating a serious challenge to the ongoing downtrend. This price increase is accompanied by a remarkable surge in derivative trading volume, which skyrocketed nearly 400% to reach $8.16 million. This spike suggests a strong re-engagement from short-term traders after a period of low price volatility.

The recent rebound comes after an era of price compression, which saw prices hover around cycle lows. Gradually, selling pressure has diminished, and it appears that traders are now looking for upward momentum.

Trendline Breaks Indicate Fresh Momentum

Onyxcoin has successfully breached the long-standing descending trendline that constrained its price for the majority of 2025, marking a crucial structural change. The price rebounded from the $0.0041–$0.0043 demand zone—known for absorbing selling pressure during the downtrend. This notable reaction led to the formation of a higher low, indicating a more stable upward trend rather than a panic decline.

As XCN climbs further, it has reclaimed the $0.0055 pivot level, which now acts as a defining factor for short-term price structure. The Relative Strength Index (RSI) has entered the upper 60s, highlighting an increase in momentum, as opposed to just a minor bounce. Nonetheless, the price is approaching the significant resistance zone of $0.0070, where sellers previously pushed the price down. The continuation of this upward movement heavily relies on holding above the $0.0055 mark; failing to do so could see prices retreating to around $0.0047 instead of progressing further.

Onyxcoin price action
Source: TradingView

Increased Leverage Signals Market Changes

Open Interest in derivatives has jumped over 61%, reaching about $3.1 million as the price climbed higher. This increase in Open Interest, alongside rising prices, indicates that traders are actively adding positions rather than merely covering shorts.

However, this surge in leverage introduces fragility into the market structure. As Open Interest climbs rapidly, even minor pullbacks can lead to considerable price swings. While high leverage doesn't negate the upward move, it emphasizes the need for persistent momentum. If prices maintain levels above the reclaimed structure, this leverage could support continued growth, but a stall in momentum could prompt rapid sell-offs.

Onyxcoin leverage activity
Source: CoinGlass

Positive Spot Flows amid Profit-Taking

Recent data from the spot market indicates a modest net inflow of nearly $327K, reflecting limited yet supportive demand. Nonetheless, this activity in the spot market remains subdued compared to the spike in derivatives trading. This discrepancy likely points to short-term profit-taking after a swift price rebound rather than a significant sell-off.

Many existing holders have experienced extended declines and may choose to take profits now that prices have risen. Importantly, spot market inflows do not reveal significant selling pressure; instead, demand appears to absorb moderate supply. Consequently, current spot flows neither strengthen nor undermine the breakout but signal caution. Without a strong accumulation from the spot market, price movements remain highly influenced by leverage, which can intensify reactions to shifts in momentum.

Spot flow details
Source: CoinGlass

Persistent Short-Term Pressure and Funding Rates

At the time of writing, the Open Interest-Weighted Funding Rate remains significantly negative at around -0.21%, despite the recent price uptick. This suggests that longer-term bearish positions still dominate the market, hinting at a struggle between bearish sentiment and new bullish momentum.

Continued negative funding amid price increases often leads to sharp price spikes driven by forced short positions. However, this volatility can also bring instability; if price action falters near resistance levels, short positions could quickly regain control. As such, current funding conditions create a high-risk environment. An upward trend remains feasible, but risk factors escalate as more leverage is introduced and market positions tighten.

Funding rate analysis
Source: CoinGlass

Can Onyxcoin Sustain Its Progress?

Onyxcoin’s recent surge puts it at a critical juncture between improving market conditions and emerging risks. While the breakout above the trendline and increasing momentum support further price advancements, the observed spot inflows suggest some degree of profit-taking after the rally. This behavior could mean that certain investors are taking profits rather than injecting new capital into the market.

Meanwhile, the substantial influence of leverage adds layers of volatility that could impact price sustainability. Upward momentum may face challenges unless demand from the spot market strengthens. Therefore, until there is confident buying from this sector, caution is advised, as profit-taking may hinder further gains and push the price into a consolidation phase, rather than allowing for continued upward progression.

Final Thoughts

As the cryptocurrency landscape evolves, monitoring market dynamics and trader behavior remains crucial. Onyxcoin’s recent breakout presents an opportunity, but the sustainability of this movement hinges on several factors, including leverage, spot market engagement, and the broader sentiment of investors.