Onyxcoin (XCN) has jumped 20% this week, marking a double-digit rally that has caught the attention of institutional investors.
As the altcoin’s price climbs, technical analysis reveals a rise in accumulation from large investors, often called “smart money,” signaling increased optimism about the token’s short-term price growth.
Institutional Confidence in XCN Grows
The surge in institutional interest is evident in XCN’s climbing Smart Money Index (SMI). As the token’s price rallied over the past week, its SMI has also climbed and currently stands at 0.91.
The SMI indicator tracks the trading activity of institutional investors, often considered the “smart money.” It analyzes intraday price movements, focusing on the first and last trading hours.
When the SMI rises alongside an asset’s price, major investors are accumulating positions, indicating confidence in the asset’s upward trend. This alignment between XCN’s SMI and its price rally is a bullish signal, reflecting strong market sentiment and the potential for a continued price increase.
Moreover, readings from XCN’s Moving Average Convergence Divergence (MACD) indicator support this bullish outlook. At press time, the token’s MACD line (blue) rests above the signal line (orange).
This crossover is typically interpreted as a bullish signal, suggesting upward momentum is gaining strength. It indicates that XCN’s recent buying pressure is outpacing historical averages, which could lead to continued price gains.
XCN Bulls Hold the Line
On the daily chart, the XCN token rests solidly above its 20-day exponential moving average (EMA). This key moving average forms dynamic support below the token’s price at $0.017.
An asset’s 20-day EMA measures an asset’s average price over the past 20 trading days, giving weight to recent prices. When an asset’s price trades above this indicator, the bulls have market control as buying pressure outweighs selloffs.
If this trend persists for XCN, its price could break above the resistance at $0.023 and climb toward $0.028. Should the bulls flip this level into a support floor, XCN could reclaim $0.033.
However, a surge in profit-taking activity will invalidate this bullish projection. In that scenario, the XCN token value could plunge below its 20-day EMA at $0.017 and fall toward $0.0075.
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