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- Monero is strong bearish in the short term, with all moves in the cryptocurrency being sold heavily right now
- A bearish head and shoulders pattern over the four hour period suggests the XMR / USD pair could slide towards the $ 58.00 level
The specs for Monero are mostly bearish right now. A number of patterns suggest that the XMR / USD pair may remain vulnerable to further losses while trading below the USD 88.00 level. In the short term, a breakout from USD 74.50 to USD 88.00 will almost certainly determine the next sharp change in direction in the cryptocurrency.
After Monero hit a high of $ 120.00 on June 23 this year, there was a bearish shift, with the cryptocurrency selling back towards $ 100.00 on rallies. The four hour timeframe is now showing a complex bearish head and shoulders pattern in the game, with the $ 58.00 level being the overall downside target.
The daily timeframe also shows that the main support for trendlines is at $ 58.00, which further underscores the importance of this important technical area that could soon come into focus.
The 200-day moving average for the XMR / USD pair is currently at $ 74.50. This is an important technical area that the bulls have been defending since the rapid $ 120.00 decline. We should expect a spike in technical sales if we see a persistent breach of the 200-day moving average in the upcoming sessions.
According to the latest sentiment data from TheTIE.io, the short-term sentiment towards Monero is currently slightly positive at 51.10%, while the long-term sentiment towards the cryptocurrency is bearish at 29.00%.
XMR / USD H4 chart from TradingView
The four hour timeframe shows that when bulls break above the $ 91.00 level, the August 8th high around the $ 98.00 level will provide the strongest form of technical resistance. The mentioned timeframe is currently showing four lower price highs, which is a pause above the recent swing high of $ 91.00, which is technically very important.
The daily timeframe shows that the XMR / USD is trading below the 50-day moving average of $ 87.00 but above the 200-day moving average of $ 74.50.
XMR / USD Daily Chart from TradingView
The downside potential for the XMR / USD pair is likely to accelerate if the USD 74.50 support level is broken and the July 17th swing low of USD 71.20 is the main support area, ahead of the 65.00 level USD is observed.
The daily time RSI indicator is trading at USD 48.00, showing that the XMR / USD pair is not yet oversold and certainly has plenty of downside potential if we see continued weakness below the USD 74.50 level.
Monero has significant downside potential if the price drops below the $ 74.50 level. The bearish pattern over the four hour period suggests a possible move towards the $ 58.00 level.
Overall, the short-term tech specs are still very bearish. Traders should watch out for a possible medium-term bearish shift if we see a move below the 200-day moving average for the XMR / USD pair.
See the Monero coin guide for a brief look at the privacy coin.
For a closer look, we have published a detailed DARE, which is part of our SIMETRI research offering.
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