Monero (XMR) Gradually Sinks as Selling Pressure Persists

Monero (XMR) Gradually Sinks as Selling Pressure Persists

Key Resistance Levels: $70, $80, $90
Key Support Levels: $40, $30, $20

XMR/USD Price Long-term Trend: Bearish
Monero is still in a bear market. The coin has been trading above the $45 support since November 25. Monero is falling and making a series of lower highs and lower lows. On November 25, the coin traded and reached lower lows of $45. After an upward correction, XMR fell back to the same low. In December the price has been consolidating above $45. A break below the support level is possible once the selling pressure resumes. Expectantly, the coin may fall and reach a low of $40 or $34.

XMR/USD - Daily Chart

Daily Chart Indicators Reading:
On November 27, the coin has a bearish crossover; the 21-day SMA crosses over the 50-day SMA indicating that Monero is falling. The 21-day SMA acts as a resistance to the coin. XMR is trading below a 25% range of the daily stochastic. This implies that coin is in bearish momentum. Nevertheless, if the blue and red bands fall below the 20% range, the market will be in a strong bearish momentum. This will cause the coin to further depreciation.

XMR/USD Medium-term bias: Ranging
On the 4-hour chart, the coin is fluctuating between the levels of $44 and $57.50. Initially, the coin fell to a low of $46 and rebounded. The upward move was resisted and price retraced and resumed consolidation at $52.50 low. Later, the bears broke below $52.50 as price nosedived to the current support. The bears tested the support on four occasions but unable to break it.

XMR/USD - 4 Hour Chart

4-hour Chart Indicators Reading
The 21-day SMA and 50-day SMA are trending horizontally indicating that price is ranging. The Relative Strength Index period 14 level 41 indicates that Monero is also in a range-bound zone. Monero is expected to trade in this horizontal channel pending the outcome of a breakout or breakdown. Selling pressure is more on the support line. A breakdown below support will further depreciate the coin.

General Outlook for Monero (XMR)
The market is in a sideways trend. Despite the price fluctuations, the bears seem to have an upper hand. Selling pressure is likely to resume if the bearish momentum is sustained. On the daily chart, if the price breaks the resistance and closes above it, there will be a change in trend. Traders can now buy at the breakout current price.

Monero(XMR) Trade Signal
Instrument: XMR/USD
Order: Buy Limit
Entry price: $40
Stop: $30
Target: $60

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.