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On June 25, 2019, a rapid decrease began for. Lows of ₿0.0075 were reached the next day. After a gradual increase, the XMR price reached a lower low of ₿0.0074 on July 4.
At the time of writing, the XMR price was trading at ₿0.0078.
Where will it go next? Below, we will look at the Monero price in different time-frames alongside technical indicators in order to answer that question.
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The XMR price has been trading inside a descending wedge since September 2018.
Even though the descending wedge is a bullish pattern, the price broke down from it on June 27, 2019.
The breakdown transpired with very significant volume.
Since then, however, the XMR price has consolidated, trading near ₿0.0076
A look at the weekly time-frame shows that the Monero price is currently at a significant support area.
This area is created by the lows of September 2016. Since then, the price has not fallen below it.
The massive volume of the breakdown raises concerns that it might be.
If it does, the next support area will be found near ₿0.0040.
A look at the moving averages (MA) suggests that it will do so.
A bearish cross between the 10- and 20-week MAs occurred in April 2018. Since then, the Monero price has been trading below both MAs.
There have been two instances of attempts at a bullish cross, in November 2018 and April 2019.
Both of them were unsuccessful, and the XMR price began to decrease afterward.
This is an indication that the buyers do not have significant strength.
The XMR price is currently trading below both MAs, facing very close resistance from the 10-week one.
Additionally, while the RSI is oversold, it has not yet begun to generate bullish divergence.
Since June 27, the Monero price has been trading inside the descending channel outlined below.
After touching the support line on July 4, the XMR price began to increase. This increase took it above both MAs.
However, the most recent price drop on July 5 caused it to again fall below both MAs.
Furthermore, they are very close to making a bearish cross.
The development of both the short- and long-term MAs combined with the volume on the breakdown, makes us believe that the Monero price does not have enough strength to initiate an upward move.
Rather, it is likely that it will continue to decrease until it finds support.
The price of XMR recently broke down from a descending wedge.
The volume of the breakdown and the movements of the moving averages make it likely that the price will continue to decrease.
If a rapid decrease begins, the XMR price is likely to find support near ₿0.0040.
Do you think the price of XMR will continue to decrease? Let us know in the comments below.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images are courtesy of Shutterstock, TradingView.
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