After months of persistent lower highs, Onyxcoin (XCN) saw a strong rebound, surging over 22% in 24 hours as buyers finally challenged the prevailing downtrend structure.
The move came alongside a strong expansion in derivatives, with trading volume exploding almost 400% to $8.16 million, signaling an aggressive re-engagement from short-term traders.
This rebound follows a prolonged squeeze near cycle lows, where selling pressure gradually weakened and volatility reduced.
The market faces a test between sustained follow-through and consolidation driven by short-term positioning adjustments.
Trendline Breaks as Momentum Awakens
Onyxcoin has decisively crossed the long-standing descending trendline that has capped price action for most of 2025, signaling a structural shift.
The price rebounded from the $0.0041 to $0.0043 demand zone, a region that consistently absorbed selling pressure during the final phase of the downtrend.
This reaction was important because it produced a higher low rather than a surge of panic.
As the price increased, it reclaimed the $0.0055 pivot, which now defines the short-term structure.
Notably, the RSI surged into the upper 60s, confirming expansionary momentum rather than a weak relief rebound.
However, the price is now approaching the $0.0070 resistance zone, an old breakout level that was previously accelerating the decline.
Therefore, the continuation depends on sustained strength above $0.0055. A loss of this level risks moving back towards $0.0047 instead of an immediate extension.
Source: TradingView
Onyxcoin Leverage Returns as Open Interest Jumps
Open interest increased by over 61%, reaching around $3.1 million as the price accelerated higher.
This alignment between rising prices and rising Open Interest confirmed new leveraged positioning rather than simple short covering.
Traders actively added exposure instead of reducing risk. However, participation based on leverage introduces fragility into the structure.
When Open Interest increases this quickly, the price becomes increasingly sensitive to even modest pullbacks.
As a result, volatility often extends in both directions. Yet leverage alone does not invalidate the decision. Instead, it raises the importance of momentum persistence.
If price holds above the recovered structure, leverage can amplify the continuation. If momentum stops, forced unwinds could accelerate downward reactions.
Source: CoinGlass
Spot flows remain positive while profit taking appears
Spot market data showed a small net inflow of nearly $327,000, signaling limited but favorable demand. However, spot participation remained moderate compared to derivatives activity.
This imbalance probably reflects short-term profit-taking following the strong rebound rather than aggressive distribution.
Many holders have suffered extended declines and can now strengthen. It is important to note that Spot feeds do not show strong selling pressure.
Instead, buyers continue to absorb moderate supply. Therefore, Spot behavior neither confirms nor rejects the breakout. This tempers conviction.
Without stronger spot accumulation, leverage remains the primary driver of price action, increasing sensitivity to changes in momentum.
Source: CoinGlass
Negative funding portends continued short-term pressure
The IO-weighted funding rate has remained deeply negative, near -0.21% at press time, even as prices have rebounded. This imbalance indicates that short positioning continues to dominate despite an improved structure.
Therefore, the market reflects a tension between bearish conviction and bullish momentum.
When negative funding persists during bullish moves, the price often experiences strong extensions driven by short-term pressures.
However, this dynamic also increases the volatility induced by liquidations. If price hesitates near resistance, shorts quickly regain control.
Thus, the financing conditions create a dual risk environment. An upward acceleration remains possible, but instability increases as debt builds and positioning tightens.
Source: CoinGlass
Can Onyxcoin Maintain Its Structural Breakdown?
Onyxcoin’s rebound now sits at a delicate balance between improving structure and emerging distribution risks.
While the trendline breakout and upward momentum support upside attempts, spot capital inflows suggest early profit-taking after the strong rally. This behavior implies that some participants withdraw rather than commit new capital.
Meanwhile, leverage continues to dominate positioning, amplifying volatility on both sides. As a result, bullish momentum may struggle to sustain without stronger spot demand.
Until spot conviction improves, caution remains in order as profit-taking could limit follow-through and force prices to consolidate rather than expand.
Final Thoughts
- Onyxcoin’s rebound remains structurally valid, but follow-through now depends on sustained buyer engagement rather than leverage.
- Without stronger spot conviction, the bullish momentum risks stalling in a consolidation near resistance.
