XMR Bears Tighten Grip as $128 Resistance Blocks the Path to Recovery
Monero (XMR) continues to face selling pressure on the daily chart, struggling to gain traction after a brief recovery from last week’s drop near the $112 mark.
The broader trend remains bearish as sellers maintain dominance, and the price continues to trade below its short-term moving averages.
Both the 9-day and 20-day exponential moving averages (EMAs) are trending lower, signaling that market sentiment is still negative. The gap between the two moving averages has widened slightly, underscoring the ongoing bearish momentum.
For a shift in sentiment, XMR would need to close decisively above the $128.10 resistance — a level that currently acts as both horizontal resistance and dynamic resistance aligned with the short-term EMAs.
MACD and RSI Reflect Weak Recovery Attempts
Momentum indicators further confirm the cautious outlook.
The Moving Average Convergence Divergence (MACD) line remains below the signal line, suggesting that bearish momentum is still in play. Although the histogram shows smaller negative bars, indicating that selling pressure may be slowing, the overall structure remains unfavorable for a sustained rally.
Daily chart for XMR/USD (Source: TradingView)
The Relative Strength Index (RSI) has rebounded modestly from oversold territory, rising into the mid-30s. This rebound suggests that the heavy selling seen earlier in the month is cooling off.
However, the RSI remains below the neutral 50 level — a sign that buying strength is still insufficient to shift the overall momentum back in favor of the bulls.
XMR Order Book Data Highlights Key Battle Zones
According to order book data, market participants are focusing on two critical areas: the $105.40 support and the $128.10 resistance.
Strong buying interest has built up near $105, which could act as a potential floor if prices drop further. On the other hand, thick sell walls near $128 are likely to challenge any short-term bullish attempts.
If XMR fails to hold the $105 level, the next psychological support sits near the $100 mark, which could attract additional buyers.
Conversely, a successful breakout above $128 could spark a recovery toward the next resistance levels at $143.90 and $145.60, both of which represent key supply zones that have historically capped upward movements.
Potential Trading Strategies
For traders, the current setup demands patience and caution.
The bearish structure favors short positions as long as the XMR price remains below the 9-day EMA. Short entries could target the $105.40 support region, with stops placed just above $128 to manage risk.
Aggressive bulls, however, may look for confirmation of strength above $128 before considering long entries. A sustained breakout with strong volume could open the path toward $143.90, offering a potential swing opportunity. Until such confirmation occurs, XMR’s broader bias remains to the downside, and volatility around these critical levels could lead to false breakouts.
Outlook
Monero’s technical landscape suggests that sellers still have the upper hand. While short-term indicators hint at easing pressure, the market lacks a strong bullish catalyst to drive a meaningful reversal.
Holding above $105 remains crucial for the bulls to defend against further declines, while reclaiming $128 is essential for any hope of a trend change.
Disclaimer: The information presented in this article is for informational and educational purposes only. It does not constitute financial advice. Ecoinimist is not responsible for any losses incurred. Readers should exercise caution before acting on this content.
