Monero (XRM) price analysis: could the outperformance continue?
Monero may rally to $225 in the short term
Monero has been an outperformer in the past few days and has rebounded sharply from its recent lows. As of 25 May 2022, the buyers are attempting to build upon the recovery and push the price above the psychological level of $200.
It is speculated that `monero’s demand may have been boosted by nations who could be using the privacy-focused coin to bypass sanctions and investors who want to evade the likely tighter crypto regulations, which may be introduced after the collapse of the Terra ecosystem.
Monero announced an upgrade dubbed Tail Emission, which will ensure miners get rewarded 0.6 XMR in every block, unlike Bitcoin where the block subsidy will eventually go to zero. This has been done to “keep fees reasonable, ensure a lower bound of network security, and enable dynamic block sizes.”
Could Monero continue its outperformance in the next few days? Could Monero go up? Read the XMR price analysis to find out.
Monero price technical analysis: weekly chart
XMR’s price has been trading inside a descending channel pattern for the past several weeks. Usually, when the price is inside a channel, traders buy near the support line and sell close to the resistance line.
The failure of the bulls to push the price above the resistance line in April may have tempted short-term traders to book profits. That pulled the price down to the centre of the channel. The buyers bought this dip and are trying to keep the XMR/USD pair in the upper half of the channel.
The pair could gradually rise to the resistance line of the channel where the bears may again mount a strong defence. If the price turns down from this level, the pair may extend its stay inside the channel.
Alternatively, if bulls thrust the price above the channel, it will signal a potential trend change. The relative strength index (RSI) near the midpoint does not give a clear advantage either to the bulls or the bears.
Monero price technical analysis: daily chart
Monero’s price has been trading inside a large range between $143 and $291 for the past few days. The bears pulled the price below the support of the range on May 11 but could not sustain the lower levels. This suggests that the buyers are defending the level aggressively.
If bulls push the price above the psychological resistance at $200, the next stop could be $225. This level may again act as a minor hurdle but if bulls push the price above it, the pair may rise to the overhead resistance at $291.
Contrary to this assumption, if the price turns down sharply from the current level or the overhead resistance, the pair could again drop toward the support at $143.
The next trending move could begin after the bulls push the price above the resistance at $291 or bears pull the pair below the support at $143. Until then, volatile range-bound action is likely to continue.
Monero: buy or sell this week?
Monero could face resistance at $200 and again at $225 but if bulls do not give up much ground, Monero’s price analysis suggests that a rally to $291 is possible. The pair will remain stuck in a range until the bulls propel the price above $291 or bears sink it below $143.
The views and opinions expressed in the article are those of the author and do not constitute trading advice. Trading and investing involve substantial risks and you should do your own research or contact your financial adviser before arriving at a decision.