Monero (XMR) Faces Brutal Bear Pressure Breaking Key Support levels

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  • A breakout over $155.8 suggested a short-term bullish bias.
  • The positive bias was reversed when the price closed below $181.6.

One of the main cryptocurrencies has performed pretty well on the price charts after the May 12 decline. When Monero fell below $133 in market value, it had a 70 percent recovery to reach $207, making it the 25th most valuable cryptocurrency. Monero’s short-term bullishness occurred at a period when Bitcoin was trading range-bound, making it an attractive investment for investors.

XMR/USDT: Source: TradingView

Nevertheless, as of publication, the structure on the timescales looked to have reverted to bearish. As observed on the 4-hour chart, the price of XMR steadily rose from February to mid-April, reaching a high of $289.5. In contrast, this resistance zone has been in place since October of the previous year.

Bears in Control

The price fell to $119 on May 12 as this resistance zone rejected it. As the price fell, it found support around the $200 level, underscoring the significance of this rounded figure to traders and investors alike. The price has again met with firm opposition near the aforementioned $200 zone in the last several days, which has confluence from the 50% retracement level. The price also fell below the 38.2% retracement line, indicating that bears may have the upper hand.

A breakout over $155.8 suggested a short-term bullish bias and saw XMR soar to $207.2 on the lower timeframes. However, this positive bias was reversed when the price closed below $181.6. Although it served as support for the last week, the $182-$188 range has now turned into resistance and might be challenged again. The $155 level might serve as a take-profit objective for a short strategy when the market retests that level. 

A trader himself, Rossi has 7 years of experience trading in the forex market and the passion for writing has brought him to Newscrypto. He is the perfect combination of market knowledge and writing skills, making him one of the most sought-after writers on cryptocurrency.