Possible Retracement In The Cards After Monero’s (MXR) Rally
2022.07.22 09:37
Possible Retracement In The Cards After Monero’s (MXR) Rally
- Investors are looking at Monero (MXR) as a good investment option.
- On July 20, the crypto was trading at $152.80, but early on July 21, the price fell to $146.30.
- Another possible reason for Monero’s recent rally could be the strong development activity in the project.
Investors are looking at Monero (MXR) as a good investment option, especially after its recent rally. The altcoin has seen a good bull run since its latest local low, but at the time of writing, MXR has been showing some sign of weakness.
Monero / TetherUS 1D (Source: CoinMarketCap)
On July 20, the crypto was trading at $152.80, but early on July 21, the price fell to $146.30. At the moment, MXR is worth about $151.56 after a 5.52% increase in price over the last 24 hours.
The price action of the altcoin suggests that the strength of the bulls are waning. MXR’s price slightly crossed over the Fibonacci retracement line before showing some signs of weakness. This came after the price crossed the 50-day moving average for the first time since May.
Despite the latest upside for MXR, the crypto is still not overbought. This means that there might be some wiggle room for bulls before the crypto enters the RSI overbought zone. This can, however, only happen if there is enough volume to push the price up.
Luckily, MXR’s volume reached its four-week peak over the last day, but despite this, whale supplies demonstrated an unfavorable outlook.
Most of MXR’s price action is also controlled by the retail segment, which can support strong short-term price rallies, but it is almost always followed by a bearish retracement if whales are not able to provide enough support.
Another possible reason for Monero’s recent rally could be the strong development activity in the project. This could be a good thing for crypto as investors could be encouraged to hold on to their MXR holdings, and so doing, soften the blow of a sharp retracement.
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