Key Technical Points for XMR Price
- •Major Resistance Zone: XMR experienced rejection from the $460 mark and subsequently closed below the $424 resistance level.
- •Critical Support Levels: The high-timeframe support is identified at $194, which coincides with the 0.618 Fibonacci retracement level and the value area high.
- •Volume and Structure: A lack of strong follow-through volume and new daily candles closing below resistance indicate a potential corrective retracement.
Monero (XMR) price action has begun to exhibit signs of weakness following the establishment of a new yearly high at $460. The bullish momentum that propelled the cryptocurrency upwards appears to be diminishing, with several technical indicators pointing towards a potential corrective phase.
The recent reclose below the $424 resistance level signifies a notable shift in market sentiment, as buyers have been unable to sustain control at key high-timeframe levels.
The recent price movement in Monero has attracted significant attention from traders. The asset's inability to hold above the $424 region could signal a more profound retracement. The rejection at $460 was sharp, indicating that sellers are actively defending this area. The daily candle closing below this resistance further reinforces the possibility of a bearish reversal, potentially leading back into the broader trading range that has characterized Monero's market structure over recent months.
Currently, Monero's price is trading below the critical resistance cluster situated between $424 and $460. This zone has historically served as a significant supply area, effectively limiting bullish expansions.
A continuation of this rejection pattern increases the likelihood that XMR will retest the lower boundary of its established trading range.
The $194 region remains the primary area of interest for potential buyers, as it represents a strong confluence zone of likely demand, combining the 0.618 Fibonacci retracement level with the value area high.
Should XMR continue to print daily closes below the $424 resistance, it would likely confirm acceptance back into the lower half of its trading range. Such a development could trigger a gradual correction toward the $194 support area, where buyers may initiate accumulation before the next significant upward impulse.
Outlook for Coming Price Action
From a technical and structural standpoint, Monero's rejection from resistance suggests that a local top may have already formed. The asset now appears positioned to enter a consolidation phase, potentially trading within the range of $194 to $424. This could lead to range-bound trading activity before the next directional breakout occurs.
A confirmed reclaim above the $424 level would serve to restore bullish confidence in the market. Conversely, a failure to hold above $400 is likely to result in a prolonged corrective movement.