Monero prices have rallied over the past week as the broader market recovered. Over the last 24 hours, XMR has rallied despite weekly gains. Coins have been trading sideways for the past few sessions before starting to move lower on the chart.
While the momentum stopped recently, it is still uncertain whether XMR will continue its upward price movement. The technical outlook of the coin continues to side with the bulls despite lateral trading.
Accumulation remains high on the chart despite a drop in demand during the last trading session. Monero also exhibits overbuying tendencies, and the fall in the value of the asset can be tied to a price correction.
Altcoins can avoid big losses if Monero stays above the immediate support line. Monero’s market capitalization has fallen slightly, meaning that the coin may have sold off in the past trading session. At current prices, the coin is trading at 70% lower than its 2021 peak.
Monero Price Analysis: Daily Chart
XMR is trading at $166 at press time. Over the past week, the coin has made gains and pierced through various resistance lines. The coin crossed the $157 resistance line and turned into the support zone for itself.
Monero trades in an upward trendline (white), usually characterized by a breakout, either in an upward or downward direction. Over the last 24 hours, XMR has moved away from the trend line and down the chart.
This could result in the coin depreciating and resting at $163, then dropping to $157 before rising again. For Monero, there is a stiff resistance at $169, so the coin cannot be moved.
The barrier above the line has not been breached since July last year. The amount of Monero sold in the previous session was red, indicating that the coin experienced some selling.
Technical Analysis
Although XMR recorded low demand, sellers were minimal compared to buyers. The Relative Strength Index (RSI) is still above 70. This indicates that the asset is overbought, which means that a price correction for Monero is underway.
Reflecting bullishness, XMR is above the 20-Simple Moving Average (SMA) line, indicating that buyers are driving price momentum in the market. XMR is also resting above the 50-SMA (yellow) and 200-SMA (green) lines.
According to the increase in accumulation, the technical outlook represents a buy signal. The Moving Average Convergence Divergence (MACD) reads price momentum and trend reversals. MACD forms a green signal bar, but the last bar is down at the height. This means prices are expected to drop.
The Chaikin Money Flow shows capital inflows and outflows; the indicator is above the half line, reflecting increased institutional interest. Monero has been on the list of good assets as the broader industry continues to recover. Still, the possibility of a price correction remains on the charts.
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