XCN crypto surged to as high as 43% over the past day as Onyx announced the launch of its own Layer-3 blockchain.
Onyxcoin’s token (XCN) broke out of its four days of downtrend to an intraday high of $0.033 on Feb. 4. Today’s gains pushed its market cap to nearly $1 billion while extending its monthly gains to over 1,000% as of last check Tuesday afternoon, Asian time.
XCN’s price rally came along with a jump in demand and trading activity. Over the past 24 hours, the altcoin’s daily trading volume jumped 20% to over $434 million, while open interest in its futures market was up 17% to nearly $21 million per CoinGlass data.
What did XCN rally today?
The key catalyst behind XCN’s rally today is the launch of its own Layer-3 blockchain, the Onyx XCN Ledger. According to an excerpt from its official blog post, the blockchain is “designed for financial-grade applications while offering near-instant confirmations and low fees.”
Built on Arbitrum Orbit and secured by Coinbase’s Layer-2 chain, Base, the platform will use XCN as its native gas token and implement EIP-1559 to burn tokens with every transaction. Burning tokens permanently removes them from a crypto asset’s total supply, theoretically creating deflationary pressure and scarcity, which can drive demand and lead to a price increase.
Buyer demand for XCN has also surged ahead of the XCN ledger’s mainnet launch. According to CoinGlass, since Jan. 27, outflows from centralized exchanges have consistently surpassed inflows.
XCN has also benefited from Bitcoin’s (BTC) recovery, along with the broader crypto market, following over $2 billion in liquidations the previous day. The leading crypto asset rebounded to the $100k level on Tuesday morning, aligning with a 4.6% jump in the global crypto market cap after President Donald Trump reached an agreement with the Canadian and Mexican presidents to pause the imposition of his controversial tariffs for a month.
XCN price analysis
On the daily chart, XCN’s price remains high above the 50-day and 200-day moving averages, which means while XCN’s bullish trend still persists, the asset is approaching an overbought level and could face a potential reversal soon.
This is confirmed by the MACD and price oscillator lines pointing downwards which also signals a potential reversal of the current trend. The Relative Strength Index also points to a bearish divergence with the price which signals weakness in the ongoing trend with a potential reversal or correction on the horizon.
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.
