Monero is currently navigating a crucial price zone, with focus on the $400 psychological level post $420 rejection. The technical level around $400 will likely influence XMR's short-to-medium-term trajectory. Investors must remain alert to the mixed market signals regarding this privacy-focused cryptocurrency.
Monero recently attempted to break through the $420 mark, but encountered solid resistance that triggered a sharp rejection. This technical movement is far from insignificant: it reveals the presence of determined sellers at this price level. Indeed, this level corresponds to the previous weekly range high.
XMR is displaying a swing failure and reintegration into its range after its attempted breakout in early November. Moreover, the CVD indicates a bearish divergence, signaling a loss of momentum among buyers.
A return to the middle of the range or to the bottom of the range at $340 or $328 is now probable.
Momentum indicators, notably the RSI on shorter timeframes, show signs of fatigue following the recent bullish attempt. This technical configuration suggests that a consolidation or correction phase could settle in before a new directional impulse emerges clearly.
The $340 level isn’t simply a random figure: it corresponds to an important technical confluence zone for Monero. This zone has historically served as resistance during recent months, and concentrates several key moving averages on daily and weekly charts. Maintaining above this threshold conditions the preservation of the medium-term bullish structure.
On-chain data shows a notable concentration of buy transactions around this price zone.
XMR will first need to maintain $385. If it loses this level, then $340 will be tested. Conversely, a sustained hold above $421 would prove that buyers now have the upper hand and a new rally could begin.
Beyond purely technical considerations, several fundamental factors currently influence Monero’s evolution. Increasing regulation around privacy-focused cryptocurrencies creates contradictory pressure: on one hand, it limits XMR’s accessibility on certain centralized exchanges; on the other, it reinforces interest in protocols guaranteeing transaction anonymity.
Monero maintains its position as the reference among privacy coins, with proven technology based on ring signatures and the RingCT protocol. This unique value proposition continues to attract a loyal user base, even though liquidity remains lower than that of major cryptocurrencies like Bitcoin or Ethereum. This characteristic directly impacts XMR’s volatility, often more pronounced during directional movements.
Recent developments around the Monero ecosystem, particularly ongoing protocol improvements and growing adoption in certain specific use cases, constitute fundamental support elements. However, these long-term factors weigh less heavily than short-term technical dynamics in determining immediate price levels.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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