Monero Has Been On A Bullish Run But Will The Momentum Hold?

The Monero price has rallied over the past week since the broader market recovered. Over the last 24 hours, XMR was consolidating despite its weekly gains. The coin traded laterally over the past few sessions before it started to dip on its chart. As momentum halted recently, it is still uncertain whether XMR will resume its upward price movement. The technical outlook of the coin continued to side with the bulls despite lateral trading. Accumulation remains high on the chart despite a downtick in demand over the last trading sessions. Monero also displayed overbuying tendencies, and the recent fall in the asset’s value could be tied to a price correction. Related Reading: Chainlink Bullish Divergence: What To Expect In 2023 The altcoin can prevent considerable loss if Monero stays above its immediate support line. The market capitalization of Monero declined slightly, meaning that the coin encountered selling in the past trading sessions. At the current price, the coin was trading at 70% low than its all-time high secured in 2021. Monero Price Analysis: One-Day Chart XMR was trading at $166 at press time. Over the last week, the coin secured gains and pierced through various resistance lines. The coin crossed the $157 resistance line and flipped it into a support zone for itself. Monero was trading on an ascending trendline (white), typically characterized by a breakout, either on the upside or the downside. Over the last 24 hours, XMR diverted from the trendline and fell on its chart. This could imply that the coin will depreciate and rest at $163, then drop to $157 before rising again. For Monero, there was stiff resistance at $169, which is why the coin could not move past it. The resistance above the line has not been breached since July last year. The amount of Monero traded in the previous session was red, indicating that the coin experienced some selling. Technical Analysis Although XMR noted a slight downtick in demand, sellers were minimal compared to buyers. The Relative Strength Index (RSI) was still above the 70 mark. This indicated that the asset was overbought, which means that a price correction for Monero was on its way. Depicting bullishness, XMR was above the 20-Simple Moving Average line (SMA), indicating that buyers were driving the price momentum in the market. XMR also rested above the 50-SMA (yellow) and 200-SMA (green) lines. Per the increase in accumulation, the technical outlook depicts buy signals. The Moving Average Convergence Divergence (MACD) reads the price momentum and trend reversals. MACD formed green signal bars, but the last bar declined in height. This ideally means that the price is expected to fall. Related Reading: Polkadot Breaches $5 But These Levels Remain Crucial For DOT The Chaikin Money Flow indicates capital inflows and outflows; the indicator was above the half-line, reflecting increased institutional interest. Monero has been on the list of well-performing assets as the broader industry continues its recovery. Still, the chance of a price correction remains on the charts. Featured Image From Unsplash, Charts From TradingView.com