Monero (XMR): Sinking Channel Leads the Near-Term Downtrend
Monero’s (XMR) technical chart indicates a sideways trend for the alternative coin. The crypto resonated within a falling channel pattern for the latest downward rally. Though the parallel channel presents a downtrend, it can prompt a bullish run.
Monero Past Performance
XMR token has traded in a sideways trend since the cryptocurrency bloodbath in 2021 May. Monero has maintained its price action in the $310 – $180 confines for the past six months. The price dropped towards support at $180 again following the latest rejection at the $300 psychological level.
RSI Divergence Hints at Incoming XMR Rally
XMR coin has resonated in a declining parallel channel for this near-term downtrend. The pattern controlled the token’s price movements since the $300 high to the crucial support at $180. Monero will suffer plummets until the price pattern dominates and potentially break the bottom support.
However, the pattern has translated to massive bullish breakouts whenever a token overpowers an overhead resistance trend-line. For that reason, market players need to watch this pattern since it provides signals and entry opportunities for long trades.
While writing these lines, the Monero coin traded at $187, following a 1.79% intraday gain. Meanwhile, the 24-hour volume change stood at $166 million, showing a 60% surge. Coinmarketcap crypto rank positions XMR at 44 with its current market capitalization 2.03% up to $3,370,104,417.
XMR/USD 4Hr Chart
The daily RSI on the 4-Hr chart presents bearish sentiment for Monero. The Relative Strength Index started printing positive signals on the chart. Moreover, the XMR coin shows a bearish picture by critical exponential moving averages (20-50-100 and 200). Also, the 20 exponential moving average lines offer dynamic resistance for the alt.
Pivot level shows the nearest resistance for XMR at $189, then $200. On the other hand, support floors stand at $172, then $159.6.
For now, Monero sustains near-term downtrends within a sinking channel. However, the RSI displayed a bullish divergence, hinting at an incoming rally for the altcoin. Monero is among the altcoins with intraday gains as the global markets sustain drops. Will the asset continue defying broad market trends? Comment in the reply section below.
