Monero (XMR) Corrects Down Towards Its Support Zone

Monero is trading downwards after hitting the edges of the downtrend line. The coin has provided a massive return to its investors in April, which is an outstanding performance compared to the previous year. XMR is making a lower low pattern in the daily chart and evidences a downtrend with the current price of $230. The coin is heading towards its support line at $176.

On the daily chart, the MACD line being below the signal line indicates an upcoming bearish momentum. The RSI, currently at 34, is expected to move towards its oversold zone. There is a formation of the bearish engulfing pattern at the edge of the downtrend line on November 22, followed by a bearish candle indicating a sell. 

The price of Monero is sloping down in the descending triangle pattern following the downtrend line. The price got tested multiple times at the trend line but got rejected and failed to ascend. In an intraday session on November 22, the XMR price fell 13%. The volume in the daily chart is lower and needs a substantial increment in favor of bears.

If we look at the weekly timeframe, Monero prices revisited the last highs made in December 2020 of around $500. Strong resistance was found again, and the token peaked in May 2021 after touching highs of just over $500 but reversing and being promptly pushed lower. The price of the XMR coin slipped over 70% in value in just two weeks. 

An upward sloping trendline emerging from the bottom of the lows of March 2020 appears to have given XMR some much-needed support. Prices seem to have somewhat stabilized, and there is far lesser volatility as market participants gear up for the next big swing.

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