Monero [XMR] Recovers from $360: What Lies Ahead?

Summary:
Monero [XMR] has experienced increased price fluctuations over the past 48 hours, initially dipping to $360 but rebounding thereafter. The key resistance level to watch is now at $380, which could determine the future price trajectory.

Key Takeaways

Monero faced volatility with a recent price dip to $360 before rebounding.
A bullish structure was formed, albeit with potential bearish signals suggesting further price challenges.
$380 emerges as a critical resistance zone, while $360 has shown to be a reliable demand area.
Traders should look for confirmation that $380 can turn from a supply zone to a demand zone before considering bullish bets.

Monero [XMR] Recovers from $360: What Lies Ahead?

A Bullish Outlook for Monero

Monero 1-day Chart Source: XMR/USDT on TradingView

Recently, Monero exhibited a bullish structure, identified by breaking its previous resistance while forming higher lows, highlighted in cyan. However, after a decline from $417 to $360, there was a bearish shift. During this drop, an imbalance at $390 created a potential supply zone.

The $360 level has consistently shown strength as a demand zone. The critical question remains: will this support hold if tested again? The On-Balance Volume (OBV) revealing lower lows indicates that sellers (bears) might currently dominate. This shift in momentum suggests a possible change in the overall price trend.

Monero 1-hour Chart Source: XMR/USDT on TradingView

In the 1-hour timeframe, the potential supply zone at $380 is more prominent. While the overall structure appears bullish, a drop below $369.6 would initiate a bearish adjustment. Encouragingly, the OBV has risen in the past 24 hours. The pressing question remains: can Monero regain its momentum to cross the $400 mark and establish a consistent uptrend?

Monero Liquidation Heatmap Source: CoinGlass

The recent 17.8% decrease from $438 to $360 has resulted in the liquidation of liquidity pockets, particularly around $385. The recent rebound from $360 and the temporary consolidation beneath $380 over the last 36 hours have created short liquidations positioned above.

A Cautious Path Ahead

There is a possibility that Monero could fall below $360, especially if Bitcoin sees a drop below $88k. The diminished demand for XMR in recent days may indicate that the rise to $380 was merely part of a larger trend shift rather than a solid recovery.

Why Traders Should Consider a Bullish Position

Despite the tepid market response over the past day, some buying interest has emerged, leading to a 5.7% increase to $381 before buying momentum stalled. The liquidation heatmap reflects liquidity concentrations just above $385, as well as at $420 and $450. These levels could act like magnets, pulling prices upward.

For traders looking to go long, it is essential to see a price breakout past $380 along with confirmation that the short-term supply zone has transitioned into a demand zone.

Final Thoughts

Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial, investment, trading, or any other type of advice. This content represents the author's opinion.