Monero (XMR) price is performing well and may continue its rise above the $165 resistance.
However, the market has recently struggled to break through key barriers and selling pressure has increased, dramatically changing the landscape.
Monero Investors May Sell
Monero price is supporting above several key levels at $159. However, concerns are emerging. This is due to two failed attempts by XMR to break above the $165 resistance.
Monero’s uptrend is currently facing challenges due to increasing selling pressure, as shown by the MACD (Moving Average Convergence Divergence).
The combination of a bearish crossover on the MACD and increasing red bars indicates that the upward momentum in price is weakening. This change in trend highlights the growing bearish sentiment among investors.
Read more: Monero: A comprehensive guide to what it is and how it works
This is the same signal of increasing selling pressure, which could erode gains made during the three-month uptrend. As selling pressure increases, it becomes more difficult for Monero to sustain positive price movement, making the market environment less favorable for long positions.
Moreover, the Sharpe ratio, a measure of risk-adjusted returns, fell back into negative territory at -1.51. This decline indicates that Monero’s returns are no longer adequately compensating investors for the risks associated with it.
Overall, the combination of increasing selling pressure and a negative Sharpe ratio suggests that Monero’s recent uptrend may be in jeopardy, which could make investors hesitant to invest in the asset.
XMR Price Prediction: Barriers Looming
Monero price has been in an uptrend for three months and is currently testing the trend line as support, which coincides with the $158 support, giving XMR a solid base to recover from.
However, if the aforementioned selling pressure intensifies, both the uptrend and the support levels may be invalidated, which could result in the price of Monero reaching the sub-$150 zone.
Read more: How to buy Monero (XMR) and everything you need to know
However, if the uptrend sustains, XMR may attempt to break out of the resistance at $165 again. If this level can be converted into support, the bearish thesis will be invalidated and XMR may rise towards $178.
Disclaimer
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