Monero (XMR) is Consolidating After a Bearish Swing – What May Happen Next?

Monero (XMR) is Consolidating After a Bearish Swing – What May Happen Next?

 Published: June 17th, 2021

Monero was launched in 2014 from the hard fork of Bytecoin. An anonymous member of the Bytecoin community created the fork as a controversial change to altcoin.

One of the biggest strengths of this cryptocurrency is its security, privacy, and decentralization. Monero uses advanced cryptography to identify senders and receivers. Since its inception, it has faced several improvements to the database structure that can increase flexibility and efficiency. The ‘concise linkable spontaneous anonymous group’ (CLSAG) signature, launched in October 2020, was the latest improvement of Monero that reduced the transaction verification speed by 20%.

Currently, 17.9 million Monero coins are in supply with over $5B market capitalization, allowing it to hold 26th position in the CoinMarketCap listing. According to many crypto enthusiasts, Monero has a strong bullish possibility in 2021. However, the recent bearish pressure took the price lower below the 316.00 event level, making the bullish potential questionable. Can Sellers’ make one more bearish swing?

Let’s see the future price direction from the Monero (XMR) technical analysis:

Monero (XMR) Daily Chart

Monero Daily Technical Analysis 17 June 2021

XMR started 2021 with a bullish sentiment and allowed investors to own $518.33 per XMR. However, the bullish sentiment didn’t sustain in May and the broader crypto market faced a crash, which came from the Chinese ban on crypto payment support.

Therefore, the price moved down from the all-time high with more than 50% loss in 17 days. Currently, the price is trading below the 316.00 event level, where buyers need to take the price above this level to change the market sentiment.

In the above image, we can see the daily chart of XMR, where the price is trading within the range of 221.45 to 316.00. Therefore, the price may extend the range if it fails to break above the 316.00 resistance level.

The most recent price is trading above the dynamic level of 20 EMA, where a bullish daily close above the dynamic level will increase the possibility of testing the 316.00 level. Moreover, in the indicator window, Aroon Down (red line) is above the Aroon Up (blue line) but moving lower, indicating that selling pressure reduces the price.

Monero (XMR) H4 Chart

Monero H4 Technical Analysis 17 June 2021

The H4 chart showed the detailed version of the current range where the price moved above the Kumo Cloud before correcting lower. In the future cloud, Senkou Span A is above Senkou Span B, indicating that the price has a possibility of continuing the current bullish pressure.

In the above image, we can see that the price corrected lower after breaking above the Kumo Cloud but was rejected from the dynamic Kijun Sen with a bullish H4 close. Moreover, the dynamic 20 EMA is below the price, and Chikou Span is above the price. Therefore, the price has a higher possibility of breaking the near-term high of 287.90 and moving towards 316.00 resistance.

Moreover, MACD Histogram is bearish but squeezing to the zero levels, which may increase the bullishness to the price. However, any strong bearish H4 close below the 250.00 level may make the current bullish pressure invalid. In that case, the price may come lower towards the 221.45 support level.

Monero (XMR) H1 Chart

Monero H1 Technical Analysis 17 June 2021

Monero is trading above the dynamic 20 EMA and vwap level in the intraday chart, but the most recent price is not stable above these dynamics levels. Although the price is trading above the high volume level of 271.11, it may come lower.

In the above image, we can see the H1 chart of XMR, where the price is below the near-term resistance of 285.00. Therefore, as the price is corrective at the resistance area, any strong bearish H1 close below the dynamic vwap level may increase the bearish pressure to the price where the primary target would be 245.00 level.

Moreover, in the indicator window, Aroon Up is still above Aroon Down, indicating that the overall market sentiment is bullish. Therefore, any bearish rejection from the dynamic vwap of a high volume level of 271.11 may take the price higher towards the 316.00 level.

Should You Try Buying Monero (XMR)?

As of the above discussion, we can say that XMR can move higher towards the 316.00 resistance level. Moreover, a stable price above this level may create another bullish swing towards the 377.47 level.

On the other hand, any strong bearish H4 close below the Cloud Support at 250.00 may take the price lower towards the 221.45 level.

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