The fall of May 19, 2021 was so drastic that XMR broke down both its 100 and 200 day moving average in a single day after falling by almost 42%. The negativity induced by this massive fall has pushed it into a bearish spiral, which is feeding on all the positive sentiment around XMR and its anonymity features.
Despite having a fundamental strength over Bitcoin and other leading cryptocurrencies, Monero failed to make a bold statement. Another reason was delisting from major crypto exchanges fearing a ban by the government since XMR was becoming a popular cryptocurrency for money laundering and criminal activities.
Can XMR raise through the selling pressure and re-claim it’s all-time high levels or in the fall to come. Head lower to our technical analysis segment for detailed information about the XMR price action.
Monero Risks Bearish Breakdown
After reaching its all time high of $533 on May 07, 2021, the XMR price has fallen multiple times to reach below the $150 mark. Monero has taken support from $185 levels four times since the profit booking induced fall in May 2021. As of now, we are witnessing prolonged consolidation zones with upper resistance at $225 and lower supports at $200.
At current prices and valuations, XMR is not entirely in a good position. Dying volumes, lowering valuations, attempting to breach lower consolidation zones, are all indicating the restart of another bearish trend that can engulf all the gains made in recent time.
The MACD indicator is showing a possibility for further falls to lower levels taking Monero price to six month lows. The only silver lining is the rise of decentralized exchanges and the settling of investor fears into this cryptocurrency. Breaching $200 on daily charts and closing below that level could be devastating for all XMR holders.
However, since it has bounced back from these levels multiple times, it is safe to assume that such a fall would force XMR into retracement and push it towards the $250 levels with renewed investor sentiment. Be wary of the positions you make in XMR since it’s not actually in positive sentiment. Although, it is a great level of averaging out your holdings.
