Monero (XMR) has experienced a significant drop of over $60 in the past 24 hours, continuing its downward trajectory as enthusiasm for privacy coins wanes. The altcoin’s recent loss is compounded by a technical indicator signaling further potential downturns in the short term. According to the latest chart patterns, Monero has formed a death cross on its hourly chart, a bearish signal that occurs when a short-term moving average (MA) crosses below a long-term MA. This suggests that the price could slide further, possibly reaching lows as low as $581.64, while a rally might push it back up to $617.30 under more favorable conditions.
Monero’s recent price performance reveals the coin slipped from a high of $648.07 to a low of $576.56 in a single day, settling at $584.22. This marks an 8.11% drop within the last 24 hours, with Monero underperforming the broader cryptocurrency market, which saw a 2.05% decline. The sharp price correction triggered a sell-off, particularly as the coin dropped below the key $600 support level. As a result, trading volume has fallen by 17.16%, down to $290.94 million. Many investors have moved away from the asset, capitalizing on profits from the previous rally and contributing to the continued pressure on the coin.
Market Sentiment and Investor Reactions
Despite the negative momentum, Monero remains a top contender in the cryptocurrency market, holding the 12th position by market capitalization with a value of $10.81 billion. The recent hype surrounding privacy coins, particularly Monero, had helped the coin break into the top 15 assets just over a week ago. However, this shift in momentum has caused investors to rethink their positions.
Monero had experienced a surge in popularity due to governance issues with Zcash (ZEC), prompting investors to shift to XMR. This sudden demand boost helped push its price higher, but with the current price decline, many are opting for profit-taking, contributing to the selling pressure. Additionally, Monero’s Relative Strength Index (RSI) of 63.36 leaves room for further downside, as the asset has yet to reach oversold conditions.
While the current market conditions are unfavorable, Monero’s long-term outlook remains tied to its standing in the privacy coin sector. Investors will be closely watching the $560 support level, as a breakdown below this critical price could see Monero’s price approach the $500 mark. Despite its current technical weakness, Monero’s strong market cap and the growing interest in privacy-focused cryptocurrencies suggest that it could recover in the future.