🌎 Onyxcoin’s XCN Token Surges 43%

Onyxcoin’s XCN Token Sees 43% Surge Following Layer-3 Blockchain Launch

Onyxcoin’s token, XCN, has experienced a significant surge in price, reaching as high as 43% over the past day. This price rally follows the announcement of the launch of Onyx’s own Layer-3 blockchain, known as the Onyx XCN Ledger.

XCN’s price broke out of its four-day downtrend, reaching an intraday high of $0.033 on February 4. The token’s market capitalization has increased to nearly $1 billion, with its monthly gains exceeding 1,000%.

Key Drivers Behind XCN’s Price Rally

The launch of the Onyx XCN Ledger is the primary catalyst behind XCN’s recent price surge. According to the official blog post, the blockchain is designed for financial-grade applications, offering near-instant confirmations and low fees.

The Onyx XCN Ledger is built on Arbitrum Orbit and secured by Coinbase’s Layer-2 chain, Base. The platform will utilize XCN as its native gas token and implement EIP-1559, which burns tokens with every transaction, creating deflationary pressure and scarcity.

Market Activity and Demand

XCN’s price rally has been accompanied by a significant increase in demand and trading activity. The token’s daily trading volume has jumped 20% to over $434 million, while open interest in its futures market has risen 17% to nearly $21 million.

Buyer demand for XCN has also surged ahead of the XCN ledger’s mainnet launch, with outflows from centralized exchanges consistently surpassing inflows since January 27.

XCN Price Analysis

XCN’s price remains high above the 50-day and 200-day moving averages, indicating a persistent bullish trend. However, the asset is approaching an overbought level and could face a potential reversal soon.

The MACD and price oscillator lines are pointing downwards, signaling a potential reversal of the current trend. The Relative Strength Index also points to a bearish divergence with the price, indicating weakness in the ongoing trend with a potential reversal or correction on the horizon.

Potential Price Movement

Based on these signals, XCN could retreat to the psychological support level of $0.025. However, this scenario may be invalidated if Bitcoin regains its bullish momentum in the coming days.

At press time, XCN was trading at $0.0299 per coin, still up 12.4% over the past day.