Disclaimer: The results of the following analysis are the sole opinion of the author and should not be taken as investment advice
- Momentum on the daily time frame turned in favor of the sellers.
- If XMR can defend $135, lower timeframe traders could look for buying opportunities.
It was a red week for the S&P 500, which fell 6.4% from Tuesday’s (13 December) open at 4092 to Friday’s (16 December) low of 3829. This started hurting Bitcoin on Wednesday (December 14) when BTC tested the $18.2k level as resistance. Monero also fell 6.2% over the same period.
Read Monero’s Price Prediction 2023-24
Despite the selling pressure over the past few days, XMR has strong support at the $135 zone. Whether the bulls can force an uptrend from there will largely depend on Bitcoin. There could be a slow bullish move in the crypto market over the weekend, followed by a drop on Monday as SPX broke the 3911 support level a few days ago.
Monero fails to break above $150 but sales volume has been just average
Source: XMR/USDT on TradingView
On the daily timeframe, Monero’s trading volume was similar to the highs the asset has seen since September. The OBV showed that buying pressure was greater overall over the past four months. Evidence of this was the higher lows seen on the OBV.
Since August, however, the price has made a series of lower highs. This indicated a downtrend that was interrupted by rallies on the lower time frame. After the November sell-off, XMR fell from $158 to $119. Since then, the price trended up and reached $151 but fell to $141 in the last few days.
The RSI broke through the neutral 50 level, indicating that the momentum was in favor of the bears. Still, there was strong support at $135.5. It was the 50% retracement level based on a move Monero made on the charts in June and July.
Long-term investors need to be careful. The trend on higher timeframes did not favor the bulls despite OBV’s higher lows. Lower timeframe traders can seek buying opportunities at the $135 level.
Large liquidations are occurring on long positions and open interest takes a hit as well
Source: Coinalyze
Coinalyze data showed that $179.6 million worth of long positions were liquidated on Dec. 16. The closed long positions increased the selling pressure. Meanwhile, the funding rate remained in the bearish territory at -0.022%.
Open interest is also down 9% in the 24 hours before press time. Since Dec 12, OI has fallen from $38.2m to $27.7m, suggesting bulls had to close but not signaling a strong bearish trend just yet.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.