Key Takeaways
- Onyxcoin surged 15% after breaking a 6-month wedge, backed by rising spot buys and $88 million volume. However, derivative traders turned sellers, raising doubts about how long the rally can last.
Onyxcoin [XCN] has joined the list of breakout altcoins, posting 15% daily gains at press time and pushing its market cap above $500 million.
Apart from a surge in price, the daily trading volume also rose by 77% which was equal to $88 million.
But now comes the test—will XCN sustain the breakout or snap back to support?
After six months of waiting, XCN breaks free
XCN pierced the apex of a descending wedge that’s held it in check for half the year. The breakout pushed price to $0.01518, with prior resistance near $0.014 now potentially flipping to support.
As seen in the chart, Onyxcoin tried to break the upper trendline several times before advancing up.
Source: TradingView
In case the XCN price declines to maintain above $0.015, a retracement might be experienced, which might bring it to the lower trendline of the wedge.
The crucial support targets at $0.014 and $0.012 would determine whether the altcoin can loop.
The movement out of the wedge was a bullish indication, and in case the price maintained to stay above $0.015, new highs might be expected up to the next resistance level at $0.03, which ought to be broken.
Are transfers driving the surge?
On-chain data from EtherScan showed 1.78 billion XCN transferred in 24 hours, with a transaction value of $31 million.
That surge came from 3,596 transactions, involving 1,414 unique receivers and 992 unique senders—a total of 1,668 unique participants.
Source: EtherScan
Notably, large network transfers often precede either price rallies or selloffs. In this case, the activity appeared linked to strategic accumulation rather than panic exits.
Spot vs. derivatives—Who’s got the edge?
A further look into the most viewed metrics on CryptoQuant showed that apart from the transfers, other factors were driving the surge in XCN price.
CryptoQuant’s data showed whale orders dominating the Spot market, with large buy volumes clustering at $0.0144, right before the breakout.
The Spot Taker Cumulative Volume Delta also flipped green, suggesting taker buyers have taken control.
But there’s a twist.
Source: CryptoQuant
Derivatives traders weren’t as bullish.
Sell orders stacked up in futures markets, pointing to short positions being built even as spot traders bid prices higher.
This divergence reflects hesitation from leveraged players despite the clean technical breakout.
