November 16, 2021 / Analytics

Monero Price Analysis: XMR Fell Into A Bear Trap

monero forecast

Monero (XMR) cryptocurrency rate fell to the support barrier at $ 245 and pushed off this obstacle. Therefore, the coin should rise to $ 280 by 23 November.

Key Points

  • XMR price dropped below the 100 hour moving average ($ 265).
  • A bearish trend line has formed with resistance around $ 290 on the hourly chart.
  • The key support area is located at $ 240.

Monero started dumping on November 15th. The asset price fell by 12% and almost reached the lower line of the contracting triangle in 12 hours. Traders have sold a very large volume of coins, therefore, the coins will be bought back. With a high degree of probability, XMR value will correct to the upper line of the pattern – to about $ 280.

xmr chart

The breakout of the pattern is expected in the second half of December. If sellers cross the bottom line of the triangle, then the Monero price could drop to $ 100. An upward breakout of the pattern would mean a pump to $ 400-425. The contracting triangle is a bearish pattern, therefore, it should be broken downwards. But anything can happen on the crypto market, so the possibility of the start of a bullish trend cannot be ruled out.

Monero Fell Into A Bear Trap

Before the downtrend began, two factors indicated a bullish trend. First, 15 out of 26 technical indicators gave signals to buy a coin, and only two instruments indicated an upcoming dump. Secondly, the 20 and 50 hour moving averages crossed. Therefore, XMR went north, but the uptrend quickly fizzled out and the bears took control of the market.

xmr chart

Given these facts, it seems that the whales have set a bear trap to create panic and force traders to get rid of the coins at a low price. The chart shows that the Monero rate fell sharply below the exponential moving average indicator strip EMA Ribbon. The price of a coin always rises after such dips, therefore, an upward rebound will occur during the next session. Thus, it is now worth buying coins and opening a sell order for $ 280.

xmr chart

Technical indicators:

  • 4 hours MACD is in the bearish trend zone.
  • 4 hours RSI is above 30 (in the neutral zone).
  • Major Support Level – $ 240.
  • Major Resistance Level – $ 280.
  • The nearest pivot points are $ 232 and $ 253.
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