XMR noted increased volatility over the past 48 hours as a key short-term resistance zone was being contested over.
A recent AMBCrypto report noted that a price dip to $355-$360 was possible for Monero [XMR]. This has come to pass, and the price has rebounded higher.
A bullish Monero bias
Source: XMR/USDT on TradingView
The bullish structure breaks and the subsequent higher low were marked in cyan. The latest internal structure shift was bearish, coming in the aftermath of the previous week’s pullback from $417 to $360.
During this pullback, an imbalance at $390 was left behind, which would now act as a supply zone to the north.
To the south, the $360 area has already served as a demand zone. Will it be defended in case of another test?
The OBV’s lower low suggested that the bears had the upper hand overall. This suggested that the internal structure shift was not a momentary change, but could define the next price trend.
Source: XMR/USDT on TradingView
The $380 supply zone was visible more clearly in the 1-hour timeframe. The structure in this timeframe was bullish, but a price drop below $369.6 would represent a bearish internal shift.
The OBV’s ascent in the past 24 hours was encouraging. But is it enough to take Monero prices back above the $400 mark and establish a steady uptrend?
Source: CoinGlass
The 17.8% pullback from $438 to $360 saw liquidity pockets taken out, such as the one at $385.
The rebound from $360 and the short-term consolidation below $380 in the past 36 hours have built short liquidations overhead.
The less likely path ahead
It is possible that Monero would be forced to fall below $360, especially in the event of a Bitcoin drop back below $88k.
The lack of demand for XMR since the previous day suggested the bounce to $380 was part of the trend shift.
Monero traders’ call to action — Why they should bet bullish
Despite the lackluster response in the past 24 hours, there has been some response. Namely, a 5.7% bounce to $381, before the bulls halted.
The liquidation heatmap showed liquidity has clustered just above $385, and at $420 and $450.
These magnetic zones would likely pull prices higher. A price bounce beyond $380 and confirmation that the short-term supply zone there was flipped to a demand zone is needed before traders can look to go long.
Final Thoughts
- The internal structure shift on the 1-day timeframe was not indicative of a trend shift, but only a warning.
- If the $380 level is not overcome, and $360 is lost as support, traders should shift their biases bearishly.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
Source: https://ambcrypto.com/monero-xmr-rebounds-from-360-but-380-barrier-emerges-what-next/
