Monero [XMR] The bullish performance that just ended October pushed it back to 4-week support. Unfortunately for buyers, the uptick may not last that long, especially considering the bearish signals that Monero is currently flashing.
Here is the AMB Cryptocurrency Price Prediction for Monero (XMR)
XMR managed to gain 10% in the last 11 days of October. This bullish relief took it out of the lower monthly range. Still, the upside isn’t enough to push XMR out of the tight range we’ve observed since mid-September.
Now that Monero enthusiasts are waiting to see which direction it will tip this month, here are some signs to consider.
XMR ended October with a retest of short-term downside resistance. This is part of a wedge pattern that the cryptocurrency has been trading since August.
XMR’s $148 price was still within its current 4-week upper range at press time and was also intersecting a descending resistance line at the time of writing.
Additionally, the Money Flow indicator recorded some outflows in the past 24 hours. These observations suggest that Monero may be about to experience a bearish retracement.
Its on-chain volume has increased slightly over the past two days, but is down significantly from its weekly highs. This suggests that there is not much buying and selling pressure happening, especially at current price levels.
Market sentiment for XMR has surged over the past seven days as investors embrace the bullish scenario. However, it has also fallen sharply since Friday (Oct 28).
Also, sentiment has picked up slightly over the past two days, which could explain why it has avoided the downside despite a retest of resistance.
Monero Mining Statistics
It’s also important to note here that Monero’s miner revenue has increased significantly over the past three months. At the same time, prices have generally trended lower over the same period.
This could indicate an increase in trading activity in the 3-month range. However, a look at Monero’s transaction count indicator reveals a sharp drop in transaction count between August and September.
However, the number of transactions started to recover in October.
Miner revenue growth has been the opposite of expectations as trading activity has dwindled. The only way for miner revenue to continue to grow is if whale action is strong or miner participation drops.
XMR’s price action for parts of August and September suggests that there may be major institutional or whale candles that could help miner revenue growth.
October, especially during the most recent rally, was markedly absent of candles that signaled strong whale action. The lack of whale action may suggest that the recent rally may be limited.
Source of information: Compiled from AMBCRYPTO by 0x Information.The copyright belongs to the author and may not be reproduced without permission