- Derivatives data show mixed signals, with bullish long-term sentiment and bearish short-term sentiment.
- A recent announcement of a new feature for Cake Wallet did not significantly impact the XMR price.
- Technical analysis suggests a potential acceleration of bearish momentum.
Monero (XMR), the top privacy-focused cryptocurrency, has dropped 5% in the past 48 hours after reaching a critical resistance level. This level has consistently been a point of failure for bulls over the past two years.
The recent decline in the XMR price suggested growing investor anxiety despite an 80% increase in 2024. Read on to discover whether investors will lock in their gains or continue to hold their positions.
Is This A Sell-Off Sign Again In XMR Price, Changing Hands From Bulls To Bears?
Following a strong bullish run, Monero’s market capitalization rose from $2.84 Billion to $3.28 Billion by September 21st. However, after hitting a solid two-year-old supply zone, the market cap slipped to $3.11 billion.
Recent bearish pressure has caused intraday spot volume inflow to surge by 50%, reaching $54.06 million. It indicated reduced demand in XMR crypto, with a low 1.41% liquidity. This made the token trading closer to exchange values less likely.
In the derivatives market, the long-term uptrend has shown bullish momentum. XMR’s OI-weighted funding rates have climbed to a positive 0.0110%, indicating strong bullish control. Long-term traders have been betting on the potential for the XMR price to rise.
However, bearish sentiment has prevailed in the short term, with more long positions liquidated intraday than short ones. The long-to-short ratio stood at $0.8426, highlighting bearish dominance in derivatives trading.
Liquidated longs amounted to $50.97K, while shorts were only $575.72. Derivatives volume has also increased by 42%. It reached $20.28 Million, with more open interest contracts amounting to $13.82 Million.
This increase reflected reduced demand for XMR crypto in the short-term derivatives market, suggesting a negative outlook. If bears continue to place sell orders to lock in profits, the XMR price could continue to fall.
Was there any benefit from this development At XMR Price?
The founder of Cake Wallet, @vikrantnyc, announced an exciting new feature that will soon be added to the wallet. This update will enable users to view the first fully air-gapped XMR transactions within Cake Wallet.
A new exciting feature is coming to Cake Wallet soon! https://t.co/VjzcxjCnt1
— Monero (XMR) (@monero) September 21, 2024
Despite this promising news, the Monero price did not increase. Instead, it formed red candles after being deflected from a supply zone.
This suggested that the community might be less interested and are locking in their profits out of fear. It led its price beneath the 20-day EMA band.
Will bearishness accelerate in XMR price?
In 2023 and 2024, the XMR price trading range fluctuated between $110 and $180 on the weekly chart. After a decline in Q1 of 2024 from the upper to the lower border of this range, the price rebounded in the second Q2. This peaked at $183 on June 12th, 2024.
However, subsequent sell-offs caused the price to fall again, though it found support at the trendline.
Currently, the Monero price has slipped below the 20-day EMA band. The price has approached the 50-day EMA band, with bearish momentum potentially accelerating. The long-term dynamic support was near the 200-day EMA band, and falling below this level could signal a trend reversal.
As per XMR price prediction, the key horizontal support levels are at $160 and $150. Conversely, breaking through the supply zone near $180 could push the price to $190 and $200.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Dr. Naveen Singh is an entrepreneur with achievements in sports, academics, healthcare, innovation, blockchain technology, telecommunications, and philanthropy. He is the Co-Founder and Chief Executive Officer (CEO) of Inery, the first layer-1 blockchain programmed for database management. With Inery, he aligns with his vision of a new paradigm for data to empower web3 and complete decentralization.