• Fri. Jun 21st, 2024

Monero (XMR): Why Traders Going Long May Have Enhanced Luck This Time

Nov 2, 2022

Monero ended October with an upside performance that saw it pushing toward its four-week support. Unfortunately, buyers might not enjoy a lasting upside as Monero flashes bearish signals. The final eleven days of October saw XMR gaining around 10%.

The bullish respite allowed the altcoin to dodge its lower monthly range. Meanwhile, the upside wasn’t massive enough to propel the alt out of the constricted range seen since the mid-September sessions. While XMR fans wait to see the alt’s direction this month, interested individuals can consider these signals.

XRM concluded October with a near-term declining resistance retest. That was a portion of the wedge setup in which the token has traversed since August. XMR’s press time of $148 remained inside its current four-week upper range while also intersecting with the declining resistance line during this publication.

Furthermore, the MFI (Money Flow Index) indicator recorded outflows within the past 24 hours. Such observations show Monero could witness a bearish retracement. Its on-chain volume shows a brief surge within the past two days, though it has significantly declined from its weekly peaks.

That signals deteriorated sell or buy pressure around the current price. Monero’s market sentiment surged over the past seven days as market players embraced the lucrative conditions. Nevertheless, it plunged notably since October 28.

Furthermore, sentiment saw a brief revival within the past two days. That might explain what the alt avoided downsides regardless of the resistance retest.

XMR Mining Stats

Also, investors should beware that Monero recorded a notable uptick in miner revenue within the past three months. Moreover, the price has registered a downward bias during that timeframe. That might show an uptick in transaction activity within the three-month range.

Yet, assessing Monero’s transaction count index confirms a swift decline in transactions in August-September. Nevertheless, the transfer count launched recoveries in October. The surge in miner revenue amid declined transaction activity remains contrary to anticipations.

The only way miner revenue could have maintained continued increases is if the crypto saw massive whale action or a decline in miner participation. XMR price in August and September shows enormous whale or institutional candlesticks that could have triggered the miner revenue surge.

Meanwhile, candlesticks that suggest massive whale actions were lacking in October and during the recent surge. The whale action absence could show that the latest recovery may be restricted.

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