Monero (XMR) faced turbulent market conditions this week, breaching its established support level of approximately $146 on 1 October. The privacy-centric cryptocurrency experienced a further decline earlier today, hitting a low of $139 on the price charts.
An analysis of Monero’s charts revealed the possibility of consecutive bearish daily candles, following an eight-day period of continual decreases between 23 and 30 September.
As of the latest update, the price of XMR stood at $140, marking a 16% drop over the past week. The recent downward movement negated the gains seen since early August when Monero (XMR) was trading close to its $146 support level.
Challenges from Exchanges Delisting
Observers connected Tuesday’s notable price drop to the prevailing negative market sentiment, which was exacerbated by geopolitical tensions in the Middle East and Kraken’s announcement of discontinuing XMR trading.
Kraken informed users in the EEA region of its decision to cease XMR support by the end of the month. This move was made amidst increasing regulatory pressures on privacy-focused cryptocurrencies often linked to illicit transactions.
Following the footsteps of other exchanges, Kraken’s decision to suspend all XMR markets in Europe further contributed to the pessimistic outlook on the coin.
Gloomy Market Forecast
Technical analysis painted a bleak picture for Monero (XMR) moving forward, hinting at a potential retesting of the support range between $134 and $136.
This support area, which aligns with previous lows observed in July and August, serves as a critical threshold where traders would be keen to see if buying interest emerges.
A breach beneath this level could leave XMR in a precarious position, possibly leading to extended declines towards $112, a key support level from mid-April.
Moreover, indicators like the Relative Strength Index and the Moving Average Convergence Divergence on the 4-hour chart highlighted a highly bearish sentiment. Today, the 4-hour RSI dipped into oversold territory, indicating strong selling pressure on XMR in the midst of a pronounced downtrend.
MACD analysis signaled a firm bearish momentum shift, with the MACD line dropping below the signal line on 1 October, suggesting an acceleration of the downward trend that may persist.
As of the latest market update, both the MACD and Signal lines remained in negative territory, underscoring the prevailing bearish sentiment.
Market Sentiment and Potential Short Positions
The ongoing market weakness indicates a prevailing downside trend, potentially prompting speculators to consider shorting strategies.
Nevertheless, a conclusive breach above the 200-day Simple Moving Average at $151 could signal a shift in momentum and hint at a possible reversal in the near term.