- Monero price suffers the biggest daily slump in a week, hitting a 12-day low before the corrective bounce.
- Downbeat stochastic and failure to stay beyond $420.00 hurdle keep XMR bears optimistic.
- 200-bar SMA triggered Monero’s bounce on the four-hour chart, but immediate resistance tests buyers.
- Daily close below $375.00 could trigger the much-awaited pullback in XMR price.
- Monero’s broad bullish trend prevails as long as the price stays beyond the 200-day SMA.
Monero (XMR) price hit a 12-day low to break a month-old support, before taking a U-turn to $380.00 early Wednesday morning in New York, down 6.0% intraday by press time.
In doing so, the altcoin bounces back to the key support line, forming part of a month-long triangle formation, mainly due to its rebound from the 200-bar Simple Moving Average (SMA) on the four-hour chart.
Still, the XMR’s repeated failures to stay beyond $420.00 horizontal hurdle, comprising the stated triangle’s top, joins the downbeat stochastic, and an improvement in the trading volume to keep the bears optimistic.
According to Santiment, Monero’s daily trading volume stalls its three-day decline while rising to $214.04 million, even as the market capitalization (market cap) slides to an 11-day low of $6.98 billion as we write.
Alongside the technical details, the market’s cautious mood ahead of the key U.S. data, the Federal Reserve’s (Fed) monetary policy meeting minutes, and Nvidia’s third quarter (Q3) earnings, as well as the hawkish Fed bias, also weigh on the XMR price.
Also read: Cryptocurrency Weekly Price Prediction: BTC, ETH, and XRP remained Red on Market Fears
Even so, a multi-month trendline support and the 200-day SMA keep Monero’s broad bullish trend intact as long as the price stays beyond $316.00. Read Details!
Monero Price: Daily Chart Highlights $375 Support
Monero’s price action since mid-October portrays a “Bearish Triangle” chart pattern and lures the sellers as the quote recently broke the confirmation line amid the downbeat, but not oversold, stochastic conditions.
Adding strength to the XMR’s bearish bias is the repeated failures to cross the $420.00 hurdle, forming part of the stated triangle.
With this, Monero is likely to break the immediate trend line support of $375.00 and confirm the bearish triangle break. The same suggests the XMR’s theoretical fall towards $230.00.
However, the 50-day SMA of $342.00, an upward-sloping trendline support from mid-August, near $320.00, and the 200-day SMA around $316.00, will be crucial challenges for the bears before taking over control.
On the flip side, Monero’s rebound could aim for the $400.00 threshold before eyeing another attempt to cross the $420.00 hurdle.
Beyond that, the all-time high, marked earlier in the month around $472.00, and the $500.00 threshold will be in the spotlight.
Monero Price: Four-Hour Chart Suggests Short-Term Consolidation
On the four-hour chart, Monero price bounces off the 200-bar SMA support of $354.70 amid a nearly oversold stochastic.
The XMR rebound, however, jostles with the 100-bar SMA hurdle near $383.50, a break of which will highlight a 10-day descending trendline resistance surrounding $411.00.
In a case where Monero price remains firmer past $411.00, the $420.00 and the daily chart’s higher levels could attract the buyers.
Alternatively, a downside break of the 200-bar SMA surrounding $354.70 could quickly drag the XMR toward the monthly low of $326.50 before the daily chart’s deeper levels.
Conclusion
Monero (XMR) price teases sellers after a three-month uptrend, suggesting an imminent fall break of $375.00 support and further downside. However, the altcoin’s broad bullish trend needs a strong negative catalyst and sustained trading below $316.00.
