Concerns about an upcoming dump in Monero (XMR) cryptocurrency market have been confirmed. The downtrend is likely to continue and the coin will drop to $ 200 by September 28.
Monero price began to fall rapidly and by Wednesday fell by 21%: from $ 276 to $ 217 (Kraken data) on September 19. Sellers broke 50% and 61.8% Fib, taking into account the pump, from $ 177 to $ 340 during the dump. The value of the asset corrected to $ 231 when reaching the bottom, but then began to decline again.
XMR price dropped well below the EMA Ribbon Moving Average indicator. Therefore, within the next two sessions, a correction to $ 239 may occur. The bulls have little chance of breaking this barrier because it coincides with the 61.8% Fib and the 100 hour moving average of the cryptocurrency value. After the correction, the Monero rate should collapse to the nearest support barrier around $ 212. If the bears take this barrier by storm, the coin will drop in price to at least $ 200 by September 28.
XMR lost 92% in value over the year after the completion of the previous bull run in 2017. The chart shows that the dynamics of the past and current bearish trends are similar, because the key support zone is located at the 61.8% Fibonacci level. If we draw an analogy between trends, then we can draw the following conclusions:
In 2018, XMR price bounced off support barriers three times, and only twice in 2021. Accordingly, there is a chance that after reaching $ 212, the rate of the cryptocurrency will soar to $ 330 and then drop just as sharply to $ 130. Taking into account the small volume of purchased coins, the likelihood of a serious bounce tends to zero. Accordingly, buying coins now carries too high risks. It makes sense to buy coins at the bottom around $ 130 and sell them during the correction towards $ 212.
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