Monero Price Key Highlights
- Monero price is still in trading inside its descending channel despite the spike higher.
- This means that the downtrend is still likely to resume from here, as reflected by technical indicators also.
- However, the mid-channel area of interest is keeping losses in check and Monero price is testing resistance once more.
Monero price could resume its downtrend as the channel resistance is holding but there could be a chance for a break higher.
Technical Indicators Signals
The 100 SMA is below the longer-term 200 SMA to confirm that the path of least resistance is to the downside. This basically means that the selloff is more likely to resume than to reverse. Also, the 100 SMA dynamic inflection point lines up with the top of the channel to add to its strength as resistance.
RSI is already on the move down to indicate that sellers have the upper hand. Stochastic has also made its way down from overbought levels to signal a return in selling pressure. This might be enough to take Monero to the channel support at $80 or at least the mid-channel area of interest at $100.
Price recently spiked higher but was unable to sustain the gains. Then again, the mid-channel area of interest is holding so far, signaling that buyers are still trying to put up a fight.
XMR/USD Chart from TradingView
Market Factors
Cryptocurrencies are still on the back foot, owing to recent security hacks and increased oversight in Japan. Last week, authorities in the country gave business improvement requirements to bitcoin exchanges to step up their efforts to crack down on money laundering and terrorist financing activity.
Meanwhile, the dollar is drawing support from cooling trade tensions as the Trump administration is willing to let the CFIUS evaluate which foreign investments should be restricted in terms of acquiring or investing in US tech companies.
