Monero price loses key trendline support, will it fall under $350?

Monero price continued sliding this week after losing a major ascending trendline support, increasing the risk of a deeper correction toward the $350 region as bearish momentum strengthens.

According to data from crypto.news, Monero (XMR) price traded around $387 at press time on May 18 after slipping below the key $390 support level during the latest sell-off. The token has now retreated sharply from its recent highs near $430 reached earlier this month.

Despite the recent decline, Monero remains significantly above its February lows near $284 as long-term demand for privacy-focused cryptocurrencies continues supporting the broader market structure.

However, momentum across the privacy coin sector has recently weakened as traders began locking in profits following XMR’s explosive rally earlier this quarter.

The latest pullback also comes amid increasing global scrutiny surrounding anonymous crypto transactions and privacy-preserving blockchain infrastructure. Regulators across several jurisdictions have continued tightening reporting standards tied to digital asset transfers, creating fresh uncertainty around the sector.

Still, Monero continues to maintain strong market dominance among privacy-focused cryptocurrencies due to its deep liquidity, active user base, and growing demand for private peer-to-peer transactions.

Some analysts also believe rising concerns over blockchain surveillance and identity-linked financial systems could continue supporting long-term interest in privacy-centric assets despite short-term market volatility.

On the daily chart, Monero price appears to have broken below a key ascending trendline support that had supported the broader uptrend since early April.

The breakdown occurred after repeated rejection attempts near the $420–$430 resistance zone, suggesting bullish momentum may now be fading following the recent rally phase.

The current setup also resembles a potential breakdown from a rising wedge structure, which is generally considered a bearish reversal pattern once support gives way.

Momentum indicators further support the weakening outlook. The MACD indicator recently confirmed a bearish crossover, while the histogram continues printing expanding negative momentum bars. This typically signals that sellers are gradually regaining control after a strong bullish trend.

Meanwhile, the RSI has cooled toward the neutral 49 region after previously approaching overbought conditions during the rally above $400. The declining RSI suggests buying pressure has weakened considerably over the past several sessions.

If bears maintain control below the broken trendline support, Monero could face additional downside pressure toward the key psychological support level at $350.

A breakdown below that region could expose XMR to a deeper correction toward the $320 support zone, where buyers previously reentered the market during the February rebound.

On the upside, bulls would need to reclaim the lost trendline support and push back above the $400 resistance zone to invalidate the current bearish structure. A successful recovery above that level could allow XMR to retest the key $420 resistance region once again.