XMR faces multi-year resistance as it reaches the oversold territory and there are strong selling signs for the coin as we can see in todayâ€™sÂ Monero news.
Monero increased by up to 55% since the start of September but despite the substantial gains incurred, the trend is getting exhausted. A spike in selling pressure around the current price level could even lead the coin to a drop towards $90. Monero was one of the few cryptocurrencies that were able to get away from the sell-off since last month and hit new yearly highs. The on-chain data shows that the privacy coinâ€™s time has finally come and Monero entered a new bull rally after the drop of 24% at the start of September. The privacy-centric cryptocurrency was able toÂ recoverÂ the losses and move higher after.
The token surged about 55% going from the low of $74 to a high of $114. The upswing led to a retest of the critical resistance barrier which was able to contain XMR from going further but each time the coin increased between the range of $115 and $122, it got rejected and suffered a major correction. Although a lot of analysts could argue that the multi-year hurdle is getting weaker over time, the level is keeping the prices at bay and a retest could even lead to bigger downsides again.
XMR faces multi-year resistance as theÂ TD SequentialÂ indicator is presenting a selling signal on XMR 3-day charts. The bearish formation developed in a form of a green nine candlestick. A boost in selling pressure could help validate the pessimistic outlook which will result in one to four 3-day candlesticks correction. The lower timeframes added credence to the bearish scenario as well. For example, Moneroâ€™s price action seems to have formed an ascending triangle on the charts as a horizontal line was created along with the swing high while there was a rising trendline forming along with the swing lows.
If sell orders start to pile up, XMR could break below the formation of an ascending triangle. With these circumstances, the downswing could trigger another sell-off among investors which will push the altcoin to $90 or even lower. The target is determined by measuring the distance between the highest points of a triangle thus adding to the breakout point. A spike in demand for the coin could allow it to break above the overhead resistance and will start a FOMO sentiment for investors. With the pivotal point where Monero sits, we will have to wait for a clear break of support or resistance before starting trades.