Monero (XMR) Hourly Death Cross Validates 17% Volume Collapse

Monero (XMR) shed over $60 in the last 24 hours as the hype for privacy coins began to fade. The decline might linger for a while as Monero has printed a death cross on its hourly chart. This suggests there could be strong implications for the altcoin in the short term as the volume plunged by 17%.

Monero faces momentum setback

Notably, a death cross pattern forms when a short-term moving average (MA) falls below the long-term MA. On the hourly chart, the 9-day and 26-day MA show the price could slide as low as $581.64 and, under positive conditions, climb to $617.30.

CoinMarketCap data shows that Monero is currently trading in the red. The coin slipped from an intraday high of $648.07 to a low of $576.56. As of press time, Monero exchanges hands at $584.22, which represents an 8.11% decline in the last 24 hours. The coin is underperforming the broader crypto market, which slipped by 2.05%.

The sharp price drop triggered a sell-off at $600 to reduce losses. Most traders dumped the coin as it continued below the $600 support. The development has led to a corresponding decline in trading volume. This metric has dipped by 17.16% to $290.94 million within the same time frame.

Interestingly, Monero had enjoyed a rally last week as investors abandoned Zcash (ZEC) for XRM due to governance issues. However, with the XMR rally facing resistance, most holders went for profit, further increasing the downward pressure.

If this bearish outlook continues, investors will need to keep an eye out for the $560 support level. 

A breach of this critical support could see Monero crashing toward $500. The asset’s Relative Strength Index (RSI) at 63.36 leaves room for further declines as there are no oversold conditions yet.

Monero holds top 15 ranking despite technical weakness

Despite the bearish outlook and price volatility triggered by the death cross, Monero remains the 12th-ranked crypto asset by market capitalization. 

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It broke into the elite top 15 assets about 10 days ago as the hype for the privacy coin intensified. With a market cap of $10.81 billion, it sits approximately $2 billion away from Chainlink, which is in 13th place.

Monero’s performance and potential might have been a key factor in influencing legendary trader Peter Brandt to invest in XMR. As U.Today reported, Brandt had revealed that he is raking in profit from the privacy coin.

He suggested that Monero could mirror silver’s breakout surge. If that holds, it means that the current decline might be temporary.