• Monero (XMR) lost about 15% of its value due to a correction, but a price reversal is likely if demand increases.
• XMR found support at $166.68, but intense selling pressure forced it down to $159.87.
• Open interest rates increased as the price declined, pointing toward a potential momentum change.
Monero (XMR) has recently seen a price correction, with the asset losing about 15% of its value, going from a peak of $188 to its current price at $159.87. Despite the correction, the asset is still showing signs of recovery, with various metrics pointing toward a possible trend reversal.
The $159.87 support is likely to be the key indicator for a potential price recovery. XMR found steady support at $166.68 during the first phase of its price correction, however, the recovery was stopped by intense selling pressure (red zone), prompting bears to come out in droves. The Relative Strength Index (RSI) reached the oversold territory, indicating the selling pressure was still intense. However, the oversold condition can also influence trend reversal, and other metrics point toward a momentum change.
In addition to the oversold territory, XMR is also showing a divergence in open interest rates and price. Coinglass data show that open interest rates increased as the price declined, which could signal a potential momentum change. Furthermore, the Funding Rate is still positive, which could also be an indication of a possible price reversal.
These metrics all point toward a potential trend reversal for XMR, and if demand increases at its current discounted price, a price reversal could be seen. With that in mind, XMR could recover and aim at the immediate resistance targets like $162.58 and $164.26 in the next few hours/days. It should be noted, however, that bears could still push XMR lower to $157.71, invalidating the bullish bias. Investors should use caution when investing and closely monitor the market for any potential changes.