Monero Looks Primed to Retrace to $150

Key Takeaways

  • Monero might retrace by greater than 20% over the subsequent few days. 
  • A sustained shut beneath $191 ought to validate the bearish thesis. 
  • XMR will possible want to declare $207 as assist to have the option to advance additional. 

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

Monero Could 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 May 12, whereas Bitcoin and lots of different property 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 usually 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 beneath $191 might validate the pessimistic outlook.

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

Source: TradingView

Although the chances 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 enhance their positions, doubtlessly serving to XMR advance towards the $232 degree.

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

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