- Monero price is consolidating within an ascending parallel channel, hinting at a crash after a small bullish impulse.
- If validated, XMR could drop by more than 25% to revisit the $115 support level.
Monero seems to be forming a massive bearish pattern that could see its price lose some of the gains made recently. Everything will depend on its ability to remain trading above the $135 support level.
Monero price’s bearish outlook overshadows the recent surge
Privacy-centric token, Monero, appears to be forming a bearish flag on its 4-hour chart. This technical formation highlights a high probability of a breakdown equal to the flag pole’s length.
If sell orders begin to pile up, Monero price could drop as much as 25% after slicing through the $135 support.
XMR/USD 4-hour chart
Multiple technical indicators, such as the Exponential Moving Averages, indicate that the odds favor the bears. The short, mid, and long-length EMAs hover above Monero price, acting as substantial resistance barriers.
Moreover, the declining green Aroon line fuels the bearish thesis as it suggests that the downtrend’s strength is increasing over time.
If Monero price closes below the $135 support level on the 4-hour chart, the bears will likely gain control. Further selling pressure around this price level would push XMR towards the nearest support area at $115.
On the flip side, only a 4-hour candlestick close above the $153 resistance level could invalidate all the bearish signals previously mentioned. If this were to happen, Monero price could enter a new uptrend that sees it rise to $200.
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.