Published 6 hours ago
Earlier today, the Monero (XMR) price jumped 7% and pierced the weekly resistance of $170. However, the price couldn’t sustain above this level and reverted immediately, displaying a high price rejection indicating the sellers continue to defend this level. If the selling pressure persists, the altcoin may retest the supporting trendline to rebound, but will it this time?
Key points:
- The bullish crossover of the 20-and-100-day EMA bolsters the $170 breakout
- The long-wick rejection at $170 indicates strong supply pressure
- The intraday trading volume in Monero coin is $134.5 Million, indicating a 45.2% hike.
Source- Tradingview
Over the past two months, the XMR/USDT pair has shown a promising rally within a parallel channel pattern. The recovery rally recorded a 74.62% gain from the low of $97.23 on June 18th to $169 today.
Therefore, until this pattern is intact, the investors can ride the ongoing recovery. However, the very nature of this continuation pattern is to bolster the prevailing trend( in our case, downward).
Furthermore, within the last three weeks, the XMR price shows multiple failed attempts to surpass the horizontal resistance level of $170. These several high-price rejection candles suggest the bullish momentum has been exhausted.
Furthermore, the XMR price range getting narrow as it wobbles between the ascending trendline and the $170 resistance will soon break either of them.
Considering the bullish theory, the recovery rally may extend higher if the XMR price breaches and provide a daily candle closing of about $170. The post breakout upswing may surge the altcoin 9% higher to reach the $185 supply zone.
Alternatively, if sellers breach the support trendline, a potential correction could plunge the coin price to $143 support.
Technical analysis
RSI indicator: the daily RSI slope drops lower as the price keeps consolidating below the $170 resistance weakness in bullish commitment. Moreover, this negative divergence bolsters the price correction theory.
EMAs: the 200-day EMA wavering around the $170 resistance adds another obstacle to the potential rally. However, on the buyer’s side, the 20-day EMA assists in maintaining the bull run.
- Resistance levels- $170 and $185
- Support levels- $153 and $134
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/xmr-price-analysis-rsi-divergence-threats-investors-for-upcoming-correction/