By Michael Scott
XCN has staged an impressive run this week to set a two-year high with 1400% gains. The 265% seven-day surge set a multi-year high market cap of $1.357 billion, emerging fresh from resolution with Justin Sun and HTX Global.
In its official statement on Friday, Jan. 24, the Onyx DAO confirmed resolving an existing XCN issue with Tron blockchain founder Justin Sun and HTX Global. Additionally, the upward trajectory in the XCN token is fueled by retail and institutional investors’ accelerated adoption of DeFi protocols.
As the cryptocurrency market is drawn to the Bitcoin rally to set a new peak on Trump’s inauguration day, Onyxcoin (XCN) gained the limelight with gigantic gains. The decentralized governance token for the Onyx protocol printed over 1480% gains in the 14-day window to hit a multi-year high of $0.04959 per latest CoinGecko data.
The mid-capped altcoin saw its intraday gain hit 270% on Jan. 24 to realize $1.1 billion in fully diluted valuation. Although not matching the Friday gigantic leap, XCN is 47.9% up to changing hands at $0.03947 per the latest market data.
Factors Fueling Recent XCN Price Rally
Several factors drive the XCN as it charts a new peak, primarily the increasing demand from speculative traders. In particular, the XCN futures open interest (OI) registered a 24% uptick in the past 24-hour timeframe to $20.7 million on the Bybit exchange.
The XCN rode on the news of Onyx DAO concluding a long-standing standoff dating to 2022. The resolution saw Sun businesses agree on deploying OIP-51 to allow HTX exchange to facilitate market support for XCN tokens. Besides XCN governance, the resolution implies that HTX exchange and Sun will participate in its staking.
A recent development possibly fueling the XCN token price is the massive support from the crypto traders. The support emerges from the rising demand for the Onyx Protocol for investors pursuing mainstream staking and farming.
This altcoin leverages the backing of top-ranked crypto exchanges via listings, particularly by the Nasdaq-listed Coinbase (COIN). The listing by the US-largest crypto exchange has seen the token’s trading perception shift. This coincides with the pro-crypto stance under the Trump administration and encourages mainstream adoption of Web3 protocols.
Bullish Momentum to Midterm Target
The rising bullish sentiment positions XCN towards registering further gains in the short term. A reflection on the XCN price movement shows that this altcoin emerged from the cup and handle pattern, often preceding the massive uptrend.
The XCN seven-day Relative Strength Index (RSI) spiked to blast beyond the critical 70% milestone, suggesting likely bullish. The highly liquid token has avoided the correction, often characterizing the leveraged market when cooling down.
Alleged Manipulation?
In a Jan.24 X post, the Tron developer had attracted criticism from blockchain startup Chain, disputing the accusations of market manipulation. The latter alleged ill intention in Sun claims that the Pantera Capital-backed startup behind the controversial market manipulation.
Sun alleged that Chain deployed high leverage and contracts that were likely to inflict irreparable harm on crypto exchange users.
While the Tron executive offered insufficient disclosure regarding the market manipulation claims, he urged cautious scrutiny of the potential risks.
Justin Sun Urges Investigation of Chain
In his X post, Sun revealed a plan to inform the US regulators of possible illegal activities executed by Chain. The crypto entrepreneur tagged along leading crypto exchanges, including Coinbase, Bybit and Kraken.
Bybit’s Ben Zhou cited a risk team tasked with combating such manipulations. The allegations prompted the Chain team to disassociate with the trading activities of Onyscoin (XCN), ruling out the alleged market manipulation.
Chain informed the X community members that XCN is managed by OnyxDAO, terming Sun’s claims as false accusations. The startup confirmed it was exploring legal action against Sun, who also urged the US Securities and Exchange Commission (SEC) and Justice Department to investigate the chain. This creates an interesting scenario, as XCN shows no signs of slowing down.