The Monero price has rallied over the past week since the broader market rallied. Over the last 24 hours, XMR was consolidating despite its weekly gains. The coin traded sideways for the past few sessions before it started to drop on its chart.
As the momentum recently stopped, it is still unclear if XMR will resume its upward price movement. The technical outlook for the coin continued to be on the bullish side despite sideways trading.
Accumulation remains high on the chart despite a drop in demand over the past few trading sessions. Monero also showed overbought trends, and the recent drop in the asset’s value could be tied to a price correction.
The altcoin can avoid sizeable losses if Monero holds above its immediate support line. Monero’s market capitalization decreased slightly, which means that the coin has been sold off in recent trading sessions. At the current price, the coin was trading 70% below its all-time high secured in 2021.
Monero price analysis: one-day chart
XMR was trading at $166 at press time. Over the past week, the coin has secured gains and broken through several resistance lines. The coin crossed the resistance line of $157 and turned it into a support zone for itself.
Monero was trading on an ascending (white) trend line, typically characterized by a breakout, either higher or lower. Over the last 24 hours, XMR deviated from the trend line and fell on its chart.
This could imply that the coin will depreciate and rest at $163, then drop to $157 before rising again. For Monero, there was strong resistance at $169, so the coin was unable to break above it.
The resistance above the line has not been broken since July of last year. The amount of Monero traded in the previous session was in the red, indicating that the coin saw some selling.
Technical analysis
Although XMR noted a slight drop in demand, sellers were minimal compared to buyers. The Relative Strength Index (RSI) was still above the 70 mark. This indicated that the asset was overbought, meaning a price correction for Monero was on the way.
Signifying the optimism, XMR was above the 20 simple moving average (SMA) line, indicating that the buyers were driving price momentum in the market. XMR also rested above the 50-SMA (yellow) and 200-SMA (green) lines.
Due to the increase in accumulation, the technical outlook shows buy signals. Moving Average Convergence Divergence (MACD) reads price momentum and trend reversals. MACD formed green signal bars, but the last bar decreased in height. Ideally, this means that the price is expected to fall.
Chaikin’s money flow indicates capital inflows and outflows; the indicator was above the median line, reflecting greater institutional interest. Monero has been on the list of strong performers as the broader industry continues its recovery. Still, the possibility of a price correction remains on the charts.
Featured Image from Unsplash, Charts from TradingView.com
