Monero (XMR) Technical Analysis: The Market Is Preparing for Growth
The last two trading months in the XMR market can hardly be called successful in terms of return on investment. From mid-August, the XMR price began to correct the previous growth wave and approached the bottom trend line of the global growth channel. In the previous analysis a month and a half ago, we wrote that the market needs a correction to determine the true strength of buyers. At the moment, the final stage of this important inspection is underway. The critical price zone for the continuation of the global growth wave is around $210-$224. As we can see in the weekly timeframe, buyers managed to test this liquidity range last week:
If you look closely at how the correction began to form in the XMR market, it becomes noticeable that the first step of sellers was to slow down the price starting from 23 August. Closing the weekly candle below the opening price at a fairly high volume showed a clear presence of sellers in the XMR market.
However, it is much more important to analyze the attack itself. If on 6 September, sellers were able to confidently push the XMR price down on high volumes, the fall last week looked much weaker. Using the same volumes, sellers were able to lower the price twice as weakly as compared to the fall on 7 September. This fact indicates the beginning of a slowdown in the XMR price fall near the liquidity range. This trend indicates a high probability of a reversal of the XMR market and the beginning of a new growth wave with the first target of $420.
Technical Analysis of XMR in the Daily Timeframe
Analyzing the daily timeframe, you can see that the XMR price since 23 August is moving in a stable falling channel. The price perfectly jumps both from the top trend line and from the bottom. Fixing a price above $275 will break the structure of the trend and signal the beginning of an active phase of growth in the XMR market.
Though, if from the current prices sellers decide to check buyers for strength for the last time – for buyers it is very important to keep the $220 mark. Thus, buyers will not allow to update a local low. Secondly, sellers will demonstrate their total weakness and willingness to transfer initiative to the market.
The XMRBTC Price Slows the Fall and Prepares to Shoot Up
If in the XMRUSDT market the explicit correction started in mid-August, in the XMRBTC market the correction has not stopped since May. Sellers confidently control the upper trend line but are not able to actively update local lows. This fact indicates a good growth prospect by the end of 2021 with a minimum target of 100%. Therefore, despite the fear and local depression that now prevails in the cryptocurrency market due to the uncertainty of Bitcoin, the new year may come on a positive note.