Monero [XMR] Just finished October with a bullish performance that brought it back to the 4-week support level. Unfortunately for the buyers, the uptrend may not last long, especially considering the bearish signals that Monero is currently flashing.
Here’s AMBCrypto Monero (XMR) Price Forecast
XMR has managed to gain up to 10% in the last 11 days of October. This bullish relief allowed it to break out of the lower monthly range. Despite this fact, the uptrend was not strong enough to push XMR out of the narrow range we have observed since mid-September.
Now, while Monero fans wait to see what direction you’re headed this month, here are some signs to keep in mind.
XMR ended October with a short term test of descending resistance. This is part of the wedge pattern that the cryptocurrency has been trading in since August.
The price of XMR at the time of printing at $148 was still within the current 4-week upper range and it also crossed the descending resistance line at the time of writing.
Additionally, the Money Flow Index has recorded some outflows in the past 24 hours. These observations indicate that Monero may be about to experience a bearish correction.
The volume on the series reveals a slight increase over the past two days but has decreased significantly compared to the weekly highs. This is a sign that there is no significant buying or selling pressure, especially at the current price level.
Market sentiment in XMR has seen a slight increase in the past seven days as investors embraced bullish conditions. However, it has also decreased significantly since Friday (October 28).
Additionally, there has been a slight recovery in sentiment over the past couple of days, which explains why it has avoided the downside despite resistance in testing.
monero mining statistics
It should also be noted here that Monero miners’ earnings have increased significantly over the past three months. At the same time, the price experienced a general downtrend during the same period.
This may indicate an increase in transaction activity over a 3-month period. However, a look at Monero’s transaction count shows a sharp drop in the number of transactions between August and September.
But the number of transactions began to recover in October.
Miners’ earnings rise when transaction activity declines runs counter to expectations. The only way miners’ profits can continue to increase is if there is a strong electoral effect or a decrease in miners’ turnout.
XMR price action in August and part of September reveals the presence of large institutional candles or candlesticks that may have contributed to the miners’ earnings growth.
Candles indicating strong electoral influence were noticeably absent in October and especially during the last rally. The lack of electoral action may indicate that the recent rally may be limited.