Monero (XMR) Technical Analysis: There Is the Abyss for Investors Below $200
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Trading volumes in the XMR market remain average. If in most cryptocurrencies the current growth wave occurs at much lower trading volumes than during the growth from January to May, the XMR market volumes are stable. The steady interest of investors in the XMR cryptocurrency both before and after the correction indicates the readiness of market participants to continue to grow. The main factor that can negatively affect the development of the XMR market is the sudden Bitcoin collapse.
As BTC buyers have not yet broken the local correction trend, the likelihood of a continued decline in the Bitcoin market remains high. In this case, an important liquidity zone of $200-$210 will be in danger in the XMR market. This liquidity range withstood a strong blow from sellers in the period from May to June 2021. Loss of control by buyers over this range will lead to a new powerful collapse of the XMR market with the first target of $123.
Technical Analysis of XMR on the Daily Timeframe
Analyzing the daily chart of XMR price movements, we can see that the local initiative still belongs to sellers. After a powerful red daily candle on 27 October for two days, buyers have shown that they do not have enough to continue to grow in the current price range. Therefore, the probability of a continued XMR market decline to $225 is more than real. The global trend line of the buyers' growth channel, which has been running since March 2020, runs near this mark. Thus, in this price range, the battle of XMR market participants for the medium-term trend will be important.
Successful maintenance of the $225 mark will lead to the formation of a new growth wave with the first serious target of $350. This mark is the upper limit of consolidation, in which the XMR price moves from May 2021. It is this mark that stops buyers from forming a strong medium-term growth wave.
The XMRBTC Price Is Still in a Downward Trend
Although buyers were able to stop a massive train of sellers near the liquidity range of 0.0039-0.0041 There is no sure reversal pattern in the XMRBTC market yet. In the event of a deterioration in the cryptocurrency market, sellers have every chance to break the range of 0.0039-0.0041 and continue the downward trend. It takes more time and a larger accumulation zone to reverse such a powerful downtrend. It is safe to say that there will be a reversal in the XMRBTC market after buyers take control of the mark of 0.0062. Until then, the initiative belongs to sellers.