Currency may not be among the top 10 cryptocurrencies, but it is moving in sync with the largest digital asset, Bitcoin. At the time of writing this article, the price of XMR is appreciating and has not seen a decline. The digital asset’s trading price was $ 160.12 with a market cap of $ 2.849 billion.
XMR Daily Chart
Source: XMRUSD
The daily chart notes how far the price of XMR has come in the last quarter. The growth spurt seen in December took the price to an annual high of $ 181. This upward momentum may soon break out, as it has yet to see a correction. Traders could benefit by shorting the coin.
Reasoning
The relative strength index has already reached the overbought zone once and has come back. The asset is still too close to the overbought zone and may need a correction for the price to stabilize.
While given Bitcoin’s long-term chart, it has already been in the overbought zone for quite some time. A correction in the bitcoin market could have a bigger impact on the altcoin market, so the chances of an XMR market crash also seemed imminent.
Position
Admission: $ 158
Stop-Loss: $ 162.66
Cash in: $ 137.38
Risk-reward: 4.42
Conclusion
The chances of a Monero price drop have increased. Even though the market experienced strong bullish momentum, a correction is in order. This correction could be triggered by a downtrend in the Bitcoin market. XMR reached dangerously close to the overbought zone and without significant price correction. The coin envisions a potential drop of at least 16%.
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