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However, instead of sustaining its rally, the XMR price broke down and closed below it, confirming the area as resistance.
As long as XMR trades below this area, the trend cannot be considered bullish despite the rest of the existing bullish signs.
The most prominent bullish sign is Monero’s bounce at the middle of its ascending parallel channel (green icon), which confirms that the rally is impulsive.
Adding to the confusion, momentum indicators lean toward both sides. The Relative Strength Index reclaimed 50, but the Moving Average Convergence/Divergence (MACD) is falling and only slightly above 0.
So, it is unclear if the XMR trend is bullish or bearish based on the weekly time frame alone. The $320 area holds the key. A successful breakout could take the price to new highs, while a rejection will likely lead to a decline toward $180.
What’s Next for XMR?
Unlike the weekly time frame, the daily chart is decisively bullish. The price analysis shows that the XMR price broke out from a descending resistance trend line after completing an A-B-C correction.
Shortly after the breakout, the XMR price validated the $285 resistance area, and Monero is currently validating it as support (green icon).
If successful, it will confirm the bullish reclaim and likely lead to a surge toward the $320 resistance area.
As outlined previously, a breakout above this level will confirm that the trend is bullish and a new cycle high is likely.
If the XMR price bounces, so will the RSI and MACD, which are currently at critical levels.
The RSI is at 50 while the MACD is close to making a bullish cross (black circle).
Therefore, a successful XMR bounce will not only move the price toward its range high but also cause the indicators to move into bullish territory.
Final Thoughts
Monero is attempting to bounce at a key support level. If successful, it will likely rise toward $320-$325 while causing the RSI and MACD to turn bullish.
If the XMR price closes above $320, it could quickly surge toward its cycle high of $415.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
