XMR price is currently stuck in a narrow consolidation zone ranging between $151 and $164. The price has been moving up and down over the EMAs. Uptrend for XMR began at the starting of 2023. Buyers pushed the price from the low of $146 level and formed a high at $187.7 which was not sustainable by the price and came straight down.
If bulls can push above the supply zone of $164 level, the price might reach to $173 level. The price has been consolidating for more than a month now which might lead to an intense breakout either upward or downward direction.
Although the XMR price is squeezing in a downward direction suggests that breakout might happen in the downward direction. The break below the current support of $151 can cause a downfall of approximately 3.50% to the price falling at the $145 level.
China’s CBDC Launch Can Affect Monero Price?
With the upcoming central bank digital currency CBDC launch of e-Yuan in China, there might be an increase in demand for XMR. Likewise, the US is also working on its own CBDC. CBDC could give governments more control over crypto transactions by entering the domain with their own tokens. Monero’s privacy-centric nature can play a significant role in the broader adoption of XMR as the government tries to gain control. That’s what makes it highly attractive to the masses.
XMR can be a way to escape jurisdiction because it is based on the Monero blockchain that exploits zero-proof technology to intensify its privacy. It is known for its anonymity transaction trail characteristic.
As the government extends its scrutiny over the crypto space, users may invest in XMR for privacy reasons. XMR, currently stuck in a consolidation zone, is expected to pick up a bullish trend after the release.
Will XMR Price Fall To $145 Level?
Chaikin money flow score is 0.02, indicating weakness in the market but has started to dip as the price hovers near the demand zone. XMR price trades below major EMAs, indicating bearish pressure has more pressure than bullish pressure. The Bollinger bands show that the XMR price is in consolidation phase as the price is trading near the 20-day SMA of Bollinger.
RSI is also trading in neutral territory and is currently at 47.08, indicating equal pressure from bulls and bears. The longs/shorts is 0.96 with 49.1% longs and 50.9% shorts, suggesting bears are trying to grab control and possibly push the price down.
Conclusion:
The market structure and price action show that the XMR price has been in consolidation phase for over a month. The technical parameters show that the price is indecisive at the current moment as it has reached the demand zone and might try to gain bullish momentum in the upcoming days to target for $164 level.
Technical levels:
Major support: $151 and $145
Major resistance: $164 and $173
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
