With the Monero price hovering just above the lower trend line of the bearish trend at the time of this writing, XMR is waiting for a bounce. A successful jump could increase the price of the privacy token by 18%, according to AMBCrypto analysts. However, violation of the trend line can reduce XMR by 16%. Therefore, Monero seems to be in a bullish or breakout state. His fate will be determined in the next few days.

 

 

1-day Monero price chart

 

When Monero’s 1-day chart is examined, it is seen that XMR has been in an expanding wedge model for almost 3 months and is expected to be released soon. The target for this breakout could be the lower part of the wedge from $ 110 to $ 113. This means that the XMR must drop by 15-20% from where it is currently standing.

What do technical indicators say for XMR?

Given the downward trajectory highlighted by Bitcoin, if BTC collapses, Monero is likely to drop further. The XMR is already at the end of the wedge and the crypto seems to be tied here with cotton thread. The only support for the price seems to be the prolonged EMA (blue). Closing the daily candle below this EMA may signal the beginning of the downtrend.

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A close below the long-term EMA could move XMR to $ 161. The main reasons supporting this scenario are the MACD indicator below the zero line and showing no signs of recovery.

Additionally, the SuperTrend indicator unveiled a new sell signal on January 21, something that supports the bearish scenario.

The RSI indicator does not show any signs of bullish divergence and reflects the recent downtrend of the price. However, given the bearish scenario, it can be seen that the RSI indicator has more room before heading into the oversold zone.

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