The Monero market has seen some sharp price movements over the past few days. In early April, we saw attendees trying to push the price up from a low of $ 246. Currently, the price has jumped to $ 265 and there are signs of extreme bullishness in the market.
This kind of extreme bullishness has often caused sharp declines in the market and XMR traders may want to be careful.
1-hour Monero (XMR) price chart
The current short-term view of the Monero market indicates that the price is exiting the descending channel. The price was pushed to the support at $ 246 and then rose 8.40% within six hours.
As long as the price remains at a high level, sellers in the market can put the price in a profit making phase that results in pushing the price to the $ 260 support at this stage.
Like the rest of the market, Monero is extremely volatile. The bullish push pushed the signal line and the 50 moving average below the candlesticks, creating an additional level of support. But despite the strong green bars available in the market, the asset is not overbought yet.
It showed that the asset is close to overbought, as its relative strength index is at 64. Meanwhile, momentum had taken a positive spin as indicated by the Awesome Oscillator. The momentum is growing alongside the bulls, but this accelerated momentum may also add to the selling pressure that arises as the price consolidates near $ 265.
The current Monero market sees a price increase in the price of the digital asset close to the resistance at $ 272. However, before testing resistance, the price could test support at $ 260. As XMR prepares to test resistance at $ 272, this could give investors a chance to short the cryptocurrency.