Onyxcoin (XCN) Dips to Two-Month Low, Bears Eye Further Declines as Short Interest Spikes

XCN has extended its prolonged decline by another day, slipping further into bearish territory. It now trades at a two-month low of $0.0088.

With waning bullish pressure and growing demand for short positions, the altcoin remains vulnerable to further losses.

XCN Dips Amid Growing Pessimism

XCN’s severely negative weighted sentiment since mid-February reinforces the lack of confidence in its price recovery. As of this writing, the metric stands below zero at -0.031. 

XCN Weighted Sentiment. Source: Santiment

An asset’s weighted sentiment measures its overall positive or negative bias, considering the volume of social media mentions and the sentiment expressed in those mentions. When an asset’s weighted sentiment is above 1, it indicates that the overall market sentiment towards the asset is favorable, with more positive than negative opinions or discussions.

Conversely, as with XCN, when the metric’s value is below 1, it is a bearish signal. It indicates pessimism among investors and signals that they are skeptical about the asset’s near-term outlook. This could prompt them to trade less, exacerbating the downward pressure on the asset. 

If this bearish sentiment strengthens, XCN could face even deeper declines in the days ahead.

Further, the token’s long/short ratio confirms this negative outlook. At press time, it is 0.95, reflecting the high demand for short positions among XCN’s derivatives traders.

XCN Long/Short Ratio. Source: Coinglass

The long/short ratio measures the proportion of long positions (bets on price increases) to short positions (bets on price declines) in the market. A ratio below one like this means there are more short positions than long positions.

It indicates that traders are predominantly bearish on XCN, increasing the possibility of a continued price dip. 

XCN Under Pressure: Selling Momentum Could Push Price to $0.0048

XCN has traded below a descending trend line since January 26. Currently trading at $0.0088, the altcoin’s value has since plunged by 78%.

With selling pressure gaining momentum, XCN could extend its decline. If demand remains scarce, the token’s price could fall to $0.0075, a low it last reached on January 17. Should the bulls fail to hold to this support floor, the token’s price could dip further to $0.0048.

XCN Price Analysis. Source: TradingView

On the other hand, a bullish reversal in the current trend could cause XCN to climb toward $0.011.