Bitcoin’s decline has had a lasting impact on many altcoins in the market. The privacy money, Monero, dropped close to 20 percent. So will XMR rise?
In the coming days, we will closely monitor whether Monero can compensate for these losses. Interestingly, despite the significant drop in price yesterday, the long-term price action for Monero was largely flat. In the long run (i.e. next week), it is not clear which direction the cryptocurrency will go.
At the time of this writing, Monero is trading at $ 129.8 with a market capitalization of $ 2.3 billion, making it the 17th largest cryptocurrency on the market.
Monero 1-day price chart
Despite yesterday’s price drop, Monero has seen mostly horizontal trading since the beginning of the month. The trading price of the crypto could not exceed the key resistance level at the $ 179.7 price level in many cases. While Bitcoin saw a price correction close to 10 percent, Monero’s value also fell. However, strong support around the $ 125 price point was not breached, and secrecy enabled the coin to stop its free falling price.
Will XMR rise?
Given the recent price action of the cryptocurrency, it is somewhat difficult to determine a short / long position traders can take for Monero in the long term. But if emergency support is breached within the next 24-48 hours, the coin is likely to revisit the second support level at $ 105 next week.
Technical indicators of cryptocurrency paint a bearish picture for Monero in the medium to long term. The MACD indicator has shown a bearish trend as the Signal line moves above the MACD line. There seems to be no real possibility of reversal at the time of this article.
The same thing was echoed by the RSI. The indicator fell towards the oversold zone and drew attention to a price drop coming in the short term. The finding also suggested that XMR was likely to trade between emergency support and resistance during the same period.