Market Analysis of Monero for December 31st 2020

Monero [XMR] may not be in the top 10 cryptocurrencies, but has jumped in step with the biggest financial currency, Bitcoin. At the time of publication, the price of XMR was appreciative and there was no dip. The exchange price for the digital commodity was $160.12 for a market value of $2,849 billion.

XMR Daily chart

The regular chart shows the long way the price of XMR has gone over the last year. The rise witnessed in December took the price to an annual high of $181. This upward momentum is expected to undergo a split shortly, as a correction has not yet been seen. Traders may profit from this by shortening the coin.

Raisoning

The Relative Strength Index has already hit the overcrowded region once and has been tracked out. The commodity is already too close to the over-purchased zone and will need a price reversal to stabilise it.

Whereas taking into account Bitcoin’s long-term chart, it has been in the over-purchased zone for some time now. The correction in the bitcoin market may have a bigger effect on the altcoin market, so the likelihood of a breakdown in the XMR market still appeared inevitable.

Place of position

Entrance: $158
Stop-Loss: 162.66$
Take-for-profit: $137.38.
Risk-to-Rewards: 4.42.

Concluding

The odds of a dip in Monero’s price have improved. Even if the market has seen a heavy upward momentum, the correction is expected. This correction may be caused by a downtrend on the Bitcoin exchange. XMR has entered a dangerously close proximity to the over-purchased zone and, without a substantial price reversal, the coin is staring at a possible decline of at least 16 per cent.

Disclaimer: The conclusions of the following report are the personal views of the reviewer and should not be taken as financial recommendations.