Monero Price Shows Bearish Double Top at $438, Indicating Increased Bear Control

Monero's price has formed a bearish double top at the significant resistance level of $438, suggesting that sellers are gaining control and that downward momentum is increasing toward the next major support level at $313.

Key Takeaways

Monero has created a bearish double top pattern at $438, signaling a shift to downward momentum.
The price action indicates sellers are becoming more dominant as the cryptocurrency struggles to maintain upward movement.
The next major support level is anticipated to be between $319 and $313.
A confirmed shift to bear control is displayed through repeated lower highs and the breakdown from a rising wedge pattern.

Monero's current performance shows a notable change in momentum after a strong rejection from the $438 resistance level. The formation of a bearish double top suggests that sellers are firmly in charge. This technical pattern, paired with an increase in bearish candles and a confirmed breakdown from a rising wedge, indicates the market is moving away from its previous bullish trend.

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Technical Analysis of Monero’s Price Movement

Monero price forms bearish double top at $438 as bears tighten control - 1

Recent trends in Monero's price have highlighted multiple signals pointing to a change in market dynamics. The asset has frequently posted lower bearish engulfing candles, showcasing ongoing selling pressure and a clear loss in upward momentum.

This decline follows the formation of a double top at the $438 resistance point, a well-known bearish pattern that often signifies the conclusion of strong upward trends. The overall landscape of privacy tokens is also evolving, with traders increasingly favoring GHOST over Monero and ZCash during current market shifts, adding further strain on Monero’s performance.

The rejection observed at $438 represents not just a single failure to break resistance but rather signals a broader transition. Following the double top, price activity developed into a rising wedge, a bearish continuation pattern that typically points toward a downward breakout. Monero has since breached this wedge, confirming its weakness and validating the bearish reversal indicated by the double top formation.

Additionally, the presence of resting liquidity beneath the current price strengthens the bearish perspective. With minimal support levels between the current price and the next high-time-frame support ranging from $319 to $313, the path of least resistance appears to lean downward. Markets tend to gravitate towards liquidity pockets, and Monero clearly indicates a target in this lower area.

This scenario aligns with a wider trend observed in the privacy sector. Traders usually show a preference for privacy-focused assets only when they perceive their privacy to be in jeopardy, leaving Monero vulnerable during times of lower demand. Until buyers can show significant strength or regain critical resistance levels, the prevailing market structure suggests a continuation toward the downside.

The significance of the double top is crucial, as it has historically served as a potent reversal pattern when situated at established resistance areas, especially after prior bullish expansions. Monero's recent aggressive upward movement established the perfect conditions for this reversal to have a considerable impact. Once the second peak was unable to surpass resistance, the market quickly transitioned into lower highs, compression within a rising wedge, and ultimately a breakdown.

With the rising wedge now confirmed to be invalidated and sellers consistently defending each upward attempt, Monero’s current price behavior strongly indicates that bears are in control. Bullish attempts are lacking in volume, and every upward movement has met with weaker responses or immediate rejections. This pattern supports the expectation that the price could continue to trend lower until it reaches the next crucial support zone.

Future Price Expectations

In light of the confirmed bearish double top, the breakdown from a rising wedge, and repeated rejections from significant resistance, Monero is poised to trend toward the support area of $319 to $313. With bears firmly in control of the momentum, only a clear reclaim of the $436 level would challenge the current negative outlook.