Onyxcoin has taken a significant hit, plunging 15% over the past week amid broader market volatility. At press time, the altcoin exchanges hands at $0.0132, noting a 1% price dip amid the general market rally.

While other assets attempt to recover, XCN remains trapped in a strong bearish cycle, with technical indicators pointing to the possibility of further losses.

XCN Bears Dominate as Price Trades Under Major Resistance Zones

Readings from the XCN/USD one-day chart show the altcoin trading below its 20-day exponential moving average (EMA). This forms resistance above its price at $0.0137.

The 20-day EMA measures an asset’s average trading price over the past 20 days, giving more weight to recent prices for a smoother trend analysis. 

When the price falls below this key moving average, it signals weakening momentum and a downtrend as sellers gain control. This indicates that XCN could face further losses unless strong buying pressure reverses the decline.

Furthermore, the altcoin trades significantly below the Leading Spans A and B of its Ichimoku Cloud, supporting this bearish outlook.

This indicator measures the momentum of an asset’s market trends and identifies potential support/resistance levels. When the price falls below this cloud, the asset in question is witnessing a downtrend. In this scenario, the cloud also acts as a dynamic resistance zone, reinforcing the downtrend. 

For XCN, its Ichimoku Cloud forms dynamic resistance above its price at $0.0154 and $0.0300, highlighting the strong downward pressure on the coin’s price. 

XCN Bears in Control – Breakout or Breakdown Next?

XCN’s price has remained within a descending parallel channel that has kept its price in decline since January 25. With strengthening selling activity, the altcoin may stay in this bearish pattern and extend its decline.

If this happens, XCN’s price could plunge to $0.0117. 

However, if buying pressure gains momentum, XCN’s price could rally past the $0.0137 resistance of its 20-day EMA and attempt to cross $0.0154.

Horizon, an initiative by Aave Labs, proposed a new financial product to bring real-world assets (RWAs) into decentralized finance (DeFi) under a regulatory framework.

The initiative is expected to generate new revenue streams for the Aave DAO, accelerate GHO adoption, and strengthen Aave’s role as a key player in the growing tokenized asset space. Amid accelerating institutional adoption, projections suggest that RWAs on blockchain networks could reach $16 trillion over the next decade.

Horizon Proposes RWA Product as Licensed Instance of Aave Protocol

In a press release shared with BeInCrypto, Aave Labs’ Horizon proposed launching an RWA product as a licensed instance of the Aave Protocol. This initiative aims to enable institutions to use tokenized money market funds (MMFs) as collateral to borrow stablecoins like USDC and Aave’s GHO.

The move is expected to unlock liquidity for stablecoins and expand institutional access to DeFi. Specifically, it would make DeFi more accessible to regulated financial entities while benefiting the Aave ecosystem.

The interest comes amid growing demand for tokenized real-world assets. Blockchain technology enhances liquidity, reduces costs, and enables programmable transactions.

Furthermore, tokenization on blockchain has made traditional assets more accessible on-chain, with tokenized US Treasuries growing by 408% year-over-year to reach $4 billion.

Subject to approval by the Aave DAO, Horizon’s RWA product will initially launch as a licensed instance of Aave V3. Later, it would transition to a custom deployment of Aave V4 when it becomes available. Horizon has proposed a structured profit-sharing mechanism to ensure long-term alignment with the Aave DAO.

“…a 50% revenue share to Aave DAO in Year 1, alongside strategic incentives to drive ecosystem growth,” Horizon told BeInCrypto.

Additionally, if Horizon launches its token, 15% of its supply will be allocated to the Aave DAO treasury and ecosystem incentives. A portion will also be set aside for staked AAVE holders.

Meanwhile, the rise of RWAs is transforming the financial playing field, and institutions are taking note. Tokenized assets are emerging as a bridge between traditional finance (TradFi) and DeFi, providing investors new opportunities to access yield-bearing assets. Key players include BlackRock (BUILD), Franklin Templeton, and Grayscale.

Institutions To Access Regulated But Permissionless Stablecoin Liquidity

However, DeFi’s open and permissionless nature poses regulatory challenges. It lacks the compliance frameworks required for large-scale institutional participation.

Institutional adoption remains limited without tailored solutions, and integrating RWAs into DeFi at scale remains a significant challenge.

Horizon seeks to bridge this gap by allowing institutions to access permissionless stablecoin liquidity. It will also meet the compliance and risk management requirements of asset issuers.

Tokenized asset issuers can enforce transfer restrictions and maintain asset-level controls. According to the announcement, this would ensure only qualified users can borrow USDC and GHO.

“…separate GHO Facilitator will enable GHO minting with RWA collateral, offering predictable borrowing rates optimized for institutions. This enhances security, scalability, and institutional adoption of RWAs in DeFi,” Horizon added.

The proposed product builds on the institutional framework established by Aave Arc. To ensure a smooth integration, Horizon will implement a permissioned token supply. It will also feature withdrawal mechanisms, stablecoin borrowing for qualified users, and permissioned liquidation workflows.

The initiative is expected to enhance the security, scalability, and institutional adoption of RWAs within DeFi.

However, despite Aave’s permissionless design being one of its greatest strengths, integrating RWAs presents challenges beyond smart contract development.

A licensed instance of Aave’s protocol will require an off-chain legal structure, regulatory coordination, and active supervision. It is imperative to note that the Aave DAO is not designed to handle these functions independently.

Operationally, the Aave DAO and its service providers will oversee the functionality of Horizon’s RWA product. However, Horizon will retain independence in configuring the instance and steering its strategic direction.

The proposal now calls on the Aave DAO to approve Horizon’s RWA product as the protocol’s licensed instance.

The next steps involve refining the proposal with the Aave community and service providers. If there is a consensus on moving forward, the proposal will proceed to a Snapshot vote.

If the vote is in favor, the proposal will advance to the final governance stage for approval.

BeInCrypto data shows that the AAVE price was trading at $173.44 as of this writing, down by 0.24% since Thursday’s session opened.

Solana (SOL) has faced significant price challenges in recent weeks, with a notable drawdown that has left it struggling to recover. 

This decline has triggered concerns in the market, further compounded by a key bearish signal. There is a rising concern among investors that these factors could lead to even more bearishness in the short term.

Solana Faces Strong Bearishness

Solana’s price has slipped below the realized price for the first time in almost 3 years. The realized price is a key metric that represents the average price at which an asset was last moved. When the spot price falls below this, it signals that the holders of Solana are collectively experiencing net unrealized losses. 

This situation is often considered a bearish signal, as it suggests that investors are sitting on losses, which may prompt some to sell in an attempt to avoid further declines. As a result, the potential for panic selling increases when the price trades below the realized price.

On a broader scale, Solana is also experiencing weak macro momentum, highlighted by the technical indicators. The Chaikin Money Flow (CMF), which measures the volume-weighted flow of money into and out of an asset, has noted a sharp downtick. The CMF is currently below the zero line, indicating that outflows are dominating inflows. 

As the CMF remains negative, it suggests that Solana’s price recovery could be hindered. The lack of buying interest and the dominance of selling activity are likely to limit any significant upward movement.

SOL Price Is Vulnerable To A Decline

Solana’s price has been down nearly 30% over the last ten days, and it is currently trading at $125, just under the critical $126 resistance level. Despite recently bouncing off the support at $118, the overall sentiment and market conditions suggest that recovery may be short-lived. The price remains under pressure, with further declines possible if key levels fail to hold.

If Solana fails to secure $126 as support, the altcoin could drop back to $118 or even lower, possibly reaching $109. This scenario would reinforce the bearish outlook and prolong the struggle for recovery. Without a strong rally, Solana could face more losses in the short term.

However, if Solana manages to breach and flip $126 into support, it could trigger a bounce toward $133, followed by potential resistance at $143. A successful breach of $143 would invalidate the current bearish thesis and signal a more strong recovery. If this occurs, Solana could regain some of the losses it has recently suffered, offering hope for investors.