Like most of the crypto market, Monero fell strongly at dawn today
The sudden jolt in the cryptocurrency market resulted in falling prices across the market. Altcoins like Monero saw a long-term bullish trend facing a bearish one. However, the change in trend may be a sign of an impending correction in your market.
At the time of this writing, XMR was trading at $ 313.10, with a market capitalization of $ 5.58 billion.
6 Hour Monero Chart
Source: XMRUSD no TradingView
The XMR chart was showing a strong bullish momentum pushing its price up the price scale. However, the market has not seen a significant correction to stabilize its price. With the 19% drop in six hours, the price of the XMR was briefly pushed down from its immediate support at $ 312.39.
As the currency continued its journey in the market, losing control of that support could result in another bearish trend.
The market is very volatile and the price has been rising within an upward channel. However, the price broke, indicating a bearish change in the current trend. The signal line also moved above the price bars, which was a confirmation of the bears’ entry into the market.
While the chart also noted that the 50 moving average was currently acting as a support for the price.
The Relative Strength Index was observing that the digital asset was moving slowly towards the oversold zone. The asset remained close to the overbought zone for a while, but with the price drop the selling pressure increased. Meanwhile, the dynamics of the market were also comparatively greater.
The current XMR market has witnessed a strong correction and the market has seen increased selling pressure. This could contribute to the price drop and bring it back to $ 287 again.