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The altcoin market was seeing some recovery after recent sell-offs, buoyed by Bitcoin’s resurgence to $44k. Monero, which has historically had a strong correlation with the king coin, has recovered from its support level and experienced a much-needed rally. However, some critical price levels must be flipped in order to attract more attention.
The daily 200-SMA was bearish, and the market was still more open to short positions at the time of publication.
XMR was trading at $248.4 at the time of writing, up 9.5 percent in the previous 24 hours.
Monero 4-hour Chart
Monero had a good start to the month of September. The altcoin recovered from its late-August lows, gaining 15% to a two-day high of $317. Sellers appeared to have flipped the script since then. A relentless assault dragged XMR down by more than 30%, with support levels of $281.6 and $247 giving way to selling pressure.
Following that, a broadening wedge breakout allowed XMR to reclaim some of its lost ground. Sellers, on the other hand, can be expected to keep profits under control.
This is to be expected for a variety of reasons. For one thing, the candles were still trading below their daily 200-SMA (not shown) – a reading that tends to attract market shorts. Second, as of press time, XMR had yet to decisively close above the $247 resistance level. To reach new heights, XMR must first surpass price ceilings of $247 and then $281.6.
Because XMR was in a downtrend, buyers typically exit their positions once the RSI rises to between 55 and 60. This gives traders the opportunity to profit before the next wave of selling pressure hits the market. If this is the case, XMR will fall to lower levels on the chart in the coming sessions.
The MACD and AO, on the other hand, were slightly more optimistic and appeared to be rising above their respective half-lines. In either case, the two indicators must continue to rise before a bullish outcome can be predicted.
Before profit-taking occurs, XMR’s rally could be limited to $247-$250. The indicators had yet to move into a bullish position. As a result, an extended rally appears unlikely.
When the next drawdown begins, expect XMR to return to the $230 level. A more severe sell-off could push the price back to $212.9.