Onyxcoin’s OIP-56 Upgrade Looms—Will XCN Bulls Hit a Glass Ceiling?
Onyxcoin’s protocol upgrade OIP-56 is gearing up for deployment, but traders are eyeing XCN’s price action with skepticism. The network enhancement promises technical improvements, yet market dynamics suggest limited upside—because when has ’upgrade hype’ ever paid rent for bagholders?
Key factors at play: Liquidity patterns show resistance levels stacking up like unread whitepapers, while derivatives traders pile into hedges. The update may streamline operations, but crypto’s favorite pastime—’buy the rumor, sell the news’—could leave XCN grinding sideways.
Watch the 200D MA: A clean hold could signal accumulation, but don’t hold your breath—this market rewards cynics as often as true believers.
Onyxcoin Is Overvalued
The NVT (Network Value to Transactions) ratio for Onyxcoin is currently at a five-month high, which indicates a sharp rise in network valuation relative to transaction activity. This spike signals a potential overvaluation of XCN, as the network’s actual transaction activity is not keeping pace with its valuation.
This discrepancy can create a sense of inflated value, which historically points to a price correction. With the NVT ratio showing a disconnect between price and real-world usage, Onyxcoin could experience increased selling pressure if investors start to realize the overvaluation.
Despite the signs of overvaluation, Onyxcoin is not facing significant bearish momentum, as shown by its Relative Strength Index (RSI). Currently, the RSI is sitting above the neutral 50.0 mark, indicating that, although the market is less favorable, XCN is still in a positive price zone.
The RSI’s position suggests that Onyxcoin could remain relatively stable or even experience some upward momentum. If the broader market conditions improve or if OIP-56 succeeds in providing further utility to the network, the price may have the potential to recover.
XCN Price Aims For Recovery
Onyxcoin’s price is currently trading at $0.0180, consolidating between $0.0214 and $0.0165. The lack of bullish momentum in the past few weeks has kept the price from rising above $0.0214, reflecting market hesitation.
Given the mixed signals from both market sentiment and technical indicators, Onyxcoin’s price may continue to consolidate in this range for the time being.
This consolidation phase is likely to continue unless a significant catalyst pushes the price in one direction. If market conditions worsen, Onyxcoin could face a drop below the $0.0165 level, possibly falling to $0.0150.
This WOULD further validate concerns about the cryptocurrency’s overvaluation and could signal a deeper correction in its price.
However, if Onyxcoin’s price begins to align with investor behavior and bullish momentum, it could break past the $0.0214 resistance. This would pave the way for a potential rise to $0.0237 and eventually towards $0.0300.
A successful breach of these levels would invalidate the current bearish outlook, indicating a stronger uptrend for Onyxcoin in the NEAR future.
