One of the leaders of the privacy coin industry, Monero’s price has taken a beating on the charts. A few months ago, Kraken had to take Monero off the list due to compliance concerns in the UK. Such news could erode investor confidence in the currency. At the time of writing, the coin was trading in supply territory of $180, but bulls could retreat again.
XMR-12H
Source: XMR/USDT on TradingView
In May 2021, Monero’s price skyrocketed to $519 per coin, but it has since registered a series of lower highs on the charts. Since September (chart above), the price has been pointing south, with periods of varying price action in between.
Bitcoin’s bullish move over the past two weeks has caused XMR to climb from the USD 140 area all the way to USD 180. Whether XMR bulls can push the price past this supply area, which used to be in demand in December and January, remains to be seen.
The continuation of the past trend would be a rejection of past demand in this area. Still, there isn’t much evidence to suggest a rejection would happen. The next few days would be needed to assess XMR’s next direction.
rode
Source: XMR/USDT on TradingView
The RSI on the 12-hour chart has climbed back above the neutral 50 in recent weeks, a sign of bullish momentum. But this in itself was not indicative of XMR’s next direction, in the bigger picture. For example, the RSI climbed to 70 in late December/early January as the price tested the $250 area and was rejected. Given that price has been in the habit of forming series for its next leg down, both the RSI and price could plunge lower in the coming weeks.
The OBV has also stalled within two levels marked on the chart, meaning the buying and selling volume over the past few months has balanced out. This was a bit of a disagreement with the price, which has consistently formed lower highs.
The Awesome Oscillator has shown declining bullish momentum at the time of writing and has generally spent most of the time below the zero line since September.
Inference
XMR was not trading in an area where buying was a wise idea. Rather, it was at a logical take-profit level. A retest of $179-$180 as a support after rising could be a buying opportunity, with a tight stop-loss.
This post Monero traded at the take-profit level; can bulls push the price past this supply area?
was published first on https://ambcrypto.com/monero-was-trading-at-a-take-profit-level-can-bulls-push-the-price-past-this-area-of-supply/
