Key Insights:
- TD Sequential buy signal suggests Monero’s trend exhaustion, hinting at a potential price rebound.
- XMR needs to break $213-$215 resistance to confirm an uptrend, with $248-$252 as major resistance.
- Open Interest recovers to 17.484M, signaling renewed market participation and bullish momentum.
Recently, Monero (XMR) has been in a downtrend, where the price dropped from a recent high of $248. A buy signal printed from the TD Sequential indicator on the 3 day chart shows a period of momentum (9) that might signal a shift in the trend. This tends to signal trend exhaustion and potential price rebounce.
Meanwhile, Monero has started to recover after touching a low of $207.50, trading at $220.53 at press time. The recent 6.33% in price in the last 24 hours indicates a return of buying interest. Yet, the market still looks cautious as XMR is down 5.56% in the past 7 days.
Support and Resistance Levels to Watch
Traders are watching key support and resistance levels, which have been set by the recent price movement. The price could fall towards the next support zone in $200.10-$202.50, and if it falls further, $207.50, the recent low, will be the nearest support.
The upside here is that XMR has to break above the $213 and $215 resistance level to invalidate the short term downtrend. If momentum continues to the upside, the next price line will be resistance at around $226-$230, with major resistance in the $248-$252 range if a change up resumes.
Funding Rates and Market Sentiment
Data from Coinalyze shows the current rate at 0.0032, and the predicted rate are stronger at 0.0053. This implies that traders are willing to pay a premium to hold the long position, which is still bullish.
On February 24–25, the funding rate was negative, indicating increased short activity, but remained consistently positive after February 26, indicating growing long interest.
A breakout of XMR above $222 would be quite likely if funding rates keep climbing up here and XMR remains in the range between $220 and $222. Yet, if leverage is too much, liquidations might happen before a sustained price rise.
Open Interest Signals Growing Market Participation
Recent days have witnessed strong fluctuations of Open Interest (OI) which measures the total number of open contracts in the market. XMR’s price decrease coincided with it falling to 15.5M, which is what it was before it peaked at 18.5M. OI has since recovered to 17.484M which indicates that traders are entering the market once again.
If price continues to rise and Open Interest also rises, then it can confirm the bullish momentum. However, suddenly falling OI may act as a signal for profit-taking or liquidations, and hinder Monero’s recovery.
Ultimately, Monero is indicating it might be headed for a rebound since the TD Sequential buy signal could turn the tide on the trend. An upwards move will need confirmation of key levels at $213-$215 and $226-$230. Market engagement is rising as funding rates and Open Interest show, but momentum can be maintained in order to price stability.
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.
