Monero Looks Primed to Retrace to $150

Monero has rallied over the previous week. Nonetheless, additional positive factors may very well be restricted as a number of technical indicators are pointing to a big pullback forward.

Monero May Take a Nosedive

Monero seems primed for a steep correction after outperforming most cryptocurrencies out there.

Demand for the privateness community’s XMR token seems to have risen following Terra’s UST and LUNA collapse. XMR has surged by greater than 75% since Could 12, whereas Bitcoin and lots of different belongings proceed to wrestle. Now, it seems that XMR has reached overbought territory with a possible retracement forward.

XMR’s worth motion seems to have led to the formation of a rising wedge on its four-hour chart. This technical sample is often seen in bear markets and, accompanied by low buying and selling volumes, can sign the continuation of a downtrend. A decisive four-hour candlestick shut under $191 might validate the pessimistic outlook.

Slicing by means of this important space of help could encourage merchants to exit their positions, accelerating the downward stress behind Monero. A spike in promote orders might result in a breach of the $188 demand zone, which might probably be adopted by a 20% correction towards $152 and even $140.

Though the percentages seem to favor the bears, Monero might invalidate the pessimistic outlook by overcoming the $207 resistance barrier. A sustained four-hour candlestick shut above this provide zone might encourage merchants to extend their positions, doubtlessly serving to XMR advance towards the $232 degree.

Disclosure: On the time of writing, the writer of this piece owned BTC and ETH.