XCN Token Surges 43% as Onyx Launches Layer-3 Blockchain
The XCN crypto has seen a significant surge of up to 43% in the past day following the announcement of Onyx’s launch of its own Layer-3 blockchain.
The XCN token, associated with Onyxcoin, broke out of a four-day downtrend to reach an intraday high of $0.033 on February 4. This surge has propelled its market capitalization to nearly $1 billion, with monthly gains exceeding 1,000% as of the latest data on Tuesday afternoon, Asia time.
This price rally for XCN coincided with a notable increase in demand and trading activity. Over the past 24 hours, the daily trading volume for the altcoin surged by 20% to over $434 million, while open interest in its futures market saw a 17% rise to almost $21 million, according to data from CoinGlass.
The Catalyst Behind XCN’s Rally
The primary catalyst driving XCN’s surge is the launch of its own Layer-3 blockchain, known as the Onyx XCN Ledger. According to a post on the official Onyx blog, this blockchain is specifically designed for financial-grade applications, offering near-instant confirmations and low fees.
Powered by 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 to burn tokens with each transaction. Token burning removes tokens from circulation, creating deflationary pressure and scarcity, potentially driving up demand and prices.
Additionally, buyer demand for XCN has surged ahead of the XCN ledger’s mainnet launch, with outflows from centralized exchanges consistently surpassing inflows since January 27, according to CoinGlass data.
XCN Price Analysis
On the daily chart, XCN’s price remains well above the 50-day and 200-day moving averages, indicating a bullish trend. However, the asset is approaching an overbought level, potentially signaling a reversal in the near future.
Indicators such as the MACD and price oscillator lines are pointing downwards, indicating a potential trend reversal. The Relative Strength Index also suggests a bearish divergence with the price, hinting at weakness in the current trend and a potential correction or reversal.
Should XCN retreat, it could find support around the $0.025 level, unless Bitcoin regains bullish momentum in the coming days. As of now, XCN is trading at $0.0299 per coin, marking a 12.4% increase over the past day.