• Monero (XMR) lost 15% of its value to the current price correction, dropping from $188 to around $160.
• XMR found steady support at $166.68 during the first phase of its price correction, but was stopped by intense selling pressure in the red zone.
• Despite this, the oversold condition could influence a trend reversal, and other metrics point towards a momentum change, with open interest rates increasing as the price declined.
Monero (XMR) has recently seen a sharp decrease in its price, dropping almost 15% from its peak of $188 to around $160. This price correction has been largely due to the intense selling pressure, as evident by the Relative Strength Index (RSI) entering the oversold territory. This is a sign that bears have been coming out in droves, but it could also be an indication of a trend reversal, as the oversold condition could trigger a price recovery.
At the same time, the open interest rates for XMR have been increasing despite the price drop, suggesting that there is still money flowing into the asset’s futures market. This is a positive sign, as it shows that the downtrend momentum could be weakening, and that a price recovery could be on the horizon. XMR has also found some support at $166.68 during the first phase of the price correction, and if this holds, then it could act as a base for the asset to aim for the immediate resistance targets of $162.58 and $164.26 in the next few hours or days.
On the other hand, bears could still push XMR lower to $157.71, invalidating the bullish outlook and possibly triggering a further price correction. Therefore, it is important to keep an eye on the price action of XMR and the open interest rates to get a better picture of the asset’s future movements.