Monero (XMR) cryptocurrency rate has consolidated above the key support area, but the volume of coins sold remains at a high level. Therefore, XMR/USD should drop in price to $ 240 by September 21st.
Monero prices started dumping on September 7th. The asset fell by 23%: from $ 315 to $ 241 (Kraken data) in 12 hours. However, the bearish trend fizzled out and the price of the cryptocurrency stabilized. XMR rose in price to $ 275 as a result of the correction, but sellers again seized the initiative and lowered the price of the virtual currency to $ 257.
The situation in Monero market is controversial. On the one hand, the bulls managed to defend the support barrier around $ 240 and keep the rate above $ 258, which coincides with the 50% Fibonacci level, taking into account the pump from $ 177 to $ 340. At the same time, the number of purchased coins cannot be compared with the number of coins sold. Therefore, it is too early to talk about U-turn.
The positive thing is that XMR has consolidated above the $ 258 barrier. But, the bears will break through this barrier without any problems given the activity of sellers. Moreover, the bulls did not work out Bart Simpson’s inverted head pattern, which began to form on September 7. Buyers tried to break up, but due to the dump, the coin rate flew down.
The data from the 4-hour chart does not inspire hope for a bright future for XMR. First, Monero rate bounced off the upper Bollinger band on September 14, which is now at $ 265. Most likely, over the next two sessions, the cryptocurrency will fall in price to the middle band ($ 254). If the bears overcome this barrier, then the price will drop to the lower band ($ 245).
Second, RSI more than doubled in the recent dump and ended up in an oversold zone. Obviously, traders ran out of cryptocurrency reserves and started buying back coins. Due to this process, RSI value rose steadily and reached the neutral zone, but recently crossed the middle line. Judging by the trend line, the index will decline to 45 in the near future. If the bulls do not regain control of the market, then the RSI indicator will overcome 45 and rush to 30 against the background of the accelerating downward movement.
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