Disclaimer: The information presented does not constitute financial, investment, trading or any other advice and is solely the opinion of the author
XMR was in the oversold zone with high selling pressure but with a likely trend reversal.
A sharp rise in open interest rates could affect the trend reversal.
Monero (XMR) lost about 15% of its value to the current price correction. After hitting a high of $188, the price correction pulled it back to about $160.
At the time of writing, the value of XMR was $159.87, and a price reversal was likely if demand increased at the current discounted price.
Read Monero [XMR] Price prediction 2023-24
The $159.88 support: Can it hold?
XMR found a stable support at $166.68 during the first phase of its price correction. However, the recovery was halted by intense selling pressure (red zone), which caused bears to come out en masse.
The Relative Strength Index (RSI) reached oversold territory, indicating that selling pressure was still strong. However, the oversold condition can also influence a trend reversal, and other metrics point to a change in momentum.
Therefore, XMR could recover and target the immediate resistance targets like $162.58 and $164.26 in the coming hours/days.
However, bears can still lower XMR to $157.71, invalidating the above bullish and price reversal bias.
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XMR recorded an OI/price difference and the funding rate remained positive
At the time of writing, XMR’s open interest rates rose as the price fell, according to data from Coinglass. It shows that more money was flowing into XMR’s futures market despite the price drop. As such, it shows that the downtrend momentum could weaken and usher in a price recovery for the asset.
On the other hand, Santiment data showed that the demand for XMR fell with the recent price drop, as evidenced by a drop in the Binance Funding Rate for the XMR/USDT pair.
Nevertheless, the Binance Funding Rate remained positive and above the neutral line at the time of writing. This shows that despite the recent drop in value, there was still a demand for XMR in the derivatives market.
Therefore, the futures market was bullish on XMR, which could slow the bearish momentum and trigger a trend reversal. However, a bearish BTC could prolong the price correction and prevent the trend reversal; thus, it is worth following the price action of BTC.
This post Monero [XMR]: Bears should be wary of the $157.1 support
was published first on https://ambcrypto.com/monero-xmr-bears-should-be-cautious-about-the-157-1-support/