Will XMR Prices Plunge to $135 Next Month After The Retest?

After a 16 % drop to break below the rising channel pattern last week, the Monero (XMR) prices show a relief rally to the $154 mark. And with a bearish candle forming at the retest, the possibility of a downtrend increases. So, will the prices break the 50-day SMA, or a lateral trend will keep the trend trapped?

Key Points:

Source - Tradingview

XMR Technical Analysis

After a tremendous bullish recovery within a rising channel, the XMR prices fell below the pattern last week. The downfall comes after failing to exceed the 200-day SMA resulting in a 16% to the $140 support level.

However, the prices took a bullish turnaround to retest the $154 level, but the retest rally took a lateral shift with a lack in trading volume. Furthermore, the recent bearish engulfing candle forming with a 2.45% fall projects the possibility of a downtrend continuation.

Currently, the prices rest at the confluence of the 50 and 100-day SMA, reflecting bullish support against the bear trend.

If the supporting SMAs propel the XMR market value above the $154 support level resistance level, an uptrend to the $175 mark is possible.

But an increase in selling pressure will drive the market value to the next support level of $135.

Technical Indicators

The RSI slope reverses in the nearly oversold zone to maintain a sideways trend close as the XMR prices revert. This reflects an increase in buying pressure but struggling to sustain growth.

Moreover, the possibility of a bullish crossover in the fast and slow lines increases as the bearish histograms display a declining trend.

Resistance Levels: $155 and $175

Support Levels: $150 and $135