Will Onyx V2 spark a bullish breakout in XCN price?

• Onyxcoin (XCN) price is around $0.015, down 19% over the past week.
• XCN is under pressure as the broader market battles fresh selling as traders book profits.
• Onyx V2’s anticipated launch and the regulatory clarity provided by the CLARITY Act could be a bullish catalyst.

Onyxcoin (XCN), the native token of the web3 protocols ecosystem Onyx, is experiencing the downside pressure that currently engulfs the broader crypto market. Celestia is among the altcoins to see 24-hour losses.

As of writing, XCN is trading at $0.01538, with a 24-hour trading volume of over $38 million.

While the market cap has dipped to $527 million, the slight uptick in daily volume indicates a notable level of market interest.

Onyx eyes traction with V2 ahead of CLARITY law

The Onyx ecosystem is gearing up for a significant upgrade with the impending launch of Onyx V2, aimed at enhancing compliance and functionality.

According to a recent announcement by OnyxDAO on X, the launch of Onyx V2 is designed to meet the highest compliance standards under the United States’ crypto markets regulation CLARITY Act.

The CLARITY Act, formally known as H.R. 3633, aims to provide a clear regulatory framework for digital assets by distinguishing between digital commodities, securities-like assets, and stablecoins.

As Onyx notes in its post on X, the V2 rollout will position XCN “as a Digital Commodity Token within a Mature Blockchain System.”

Potentially, this means broadening the project’s appeal to institutional investors amid broader regulatory compliance.

Onyx has cautioned the community that there will be no token swaps, with users asked to beware of scams and fake airdrops.

Onyxcoin price outlook

The anticipation surrounding Onyx V2 could spark considerable interest in XCN, hence catalyzing an upward flip.

Among market outlook indicators traders are watching to gauge potential price movements is open interest.

While XCN derivatives have seen a slight decrease in OI, the weighted funding rate remains positive. Derivatives volume, which reflects trading activity in futures and options, has also fallen 14% to around $25 million.

From a technical point of view, indicators on the daily chart further support a short term bearish strength.

The Relative Strength Index (RSI) for XCN is currently at 43, not yet oversold. However, it is downsloping to suggest sellers could gain momentum.

Meanwhile, the Moving Average Convergence Divergence (MACD) shows a bearish crossover, with the MACD line crossing below the signal line. XCN price is also near the support line of a falling wedge, and a drop could extend losses.

Interestingly, Onyxcoin is down 19% over the past week and has pared most of the gains seen when price jumped to highs of $0.02 in mid-July.

XCN is nonetheless more than 914% up in the past year. While this suggests a bullish trend amidst broader market volatility, price is near a critical support level.