- Monero price faces rejection at the $181.22 daily resistance level.
- The Relative Strength Index (RSI) and Awesome Oscillator (AO) signal XMR bearish divergence.
- A daily candlestick close above $181.22 would invalidate the bearish thesis.
Monero (XMR) price has encountered resistance at a critical level. The technical outlook suggests a potential short-term correction as momentum indicators signal a bearish divergence.
Monero price set to retest lows
The Monero price failed to close above the $181.22 daily resistance level on Thursday, leading to a short-term correction of roughly 5% from its daily high of $181.23 to a low of $171.40.
This price drop also broke below the ascending trendline, which had previously acted as support, drawn from joining three swing low points from June 8 to 13, as shown in the four-hour chart.
If the $181.22 daily level and the ascending trendline hold as resistance, then Monero's price could decline 3% from its trendline break roughly at $173.47 to its recent low of $167.14 on June 11.
If the bears are aggressive and the overall crypto market outlook is negative, then XMR could break below $167.14, and extend the decline by 9% to retest its low of $152.23 on June 8.
The RSI and the AO indicators support the bearish thesis. The higher close formed on June 13 is not followed by a corresponding high in the RSI for the same period. This development is termed a bearish divergence and often leads to the reversal of the trend or a short-term price drop.
XMR/USDT 4-hour chart
However, if the XMR daily candlestick closes above $181.22, it will produce a higher high in the daily time frame. Such a development would give rise to a bullish market structure. This change in market structure would invalidate the bearish thesis and catalyze a 5% increase in the XMR price to revisit its daily high of $190.17 from June 9.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC consolidates while ETH and XRP show some strength
Bitcoin (BTC) consolidated between $94,000 and $100,000 in the last nine days. Ethereum (ETH) and Ripple (XRP) prices stood relatively stronger and have gained nearly 3% and 7%, respectively, this week.
Trump's US reciprocal tariffs pause fails to improve Bitcoin and crypto market outlook
Bitcoin (BTC) and top cryptos halted their declines following a pause in President Donald Trump's reciprocal tariff plans, which were originally scheduled to go live on Thursday.
Ripple vs SEC battle nears end as the regulator acknowledges Grayscale XRP ETF filing
Ripple's XRP is up 4% in the early hours of Friday following the Securities and Exchange Commission (SEC) acknowledgment of Grayscale's 19b-4 filing to convert its XRP Trust to an ETF.
200,000 New Investors Buy Ripple (XRP) 30-Days After Gensler’s Farewell: What Next for Stellar (XLM)?
Ripple (XRP) price consolidated around $2.40 on Thursday, up 11% since Monday, technical indicators suggest Stellar (XLM) has joined the rally.
Bitcoin: BTC consolidates before a big move
Bitcoin's (BTC) price has been consolidating between $94,000 and $100,000 for the last ten days, and, when writing on Friday, it hovers around $97,000. Despite this consolidation, US Bitcoin spot Exchange Traded Funds (ETFs) data recorded a total net outflow of $650.80 million until Thursday, hinting signs of weakness among institutional investors.
The Best Brokers of the Year
SPONSORED Explore top-quality choices worldwide and locally. Compare key features like spreads, leverage, and platforms. Find the right broker for your needs, whether trading CFDs, Forex pairs like EUR/USD, or commodities like Gold.