Here’s Why XMR Could Crash 13%

• Monero is retesting a downtrend line, suggesting a potential decline ahead.
• Traders looking to short XMR could consider entering around the $160 level.
• A daily candlestick close above $169.28 would invalidate the bearish thesis.

Monero (XMR) is retesting a downtrend line and trading up 1% to $156.21 on Friday. Traders looking to short XMR could consider entering around the $160 level, anticipating a potential decline in the coming days.

Monero price eyes for a crash after retesting resistance level

Monero price retested the 50% retracement level of the rally from the swing low of $92.04 on February 24 and the swing high of $183.07 on June 10 to $137.55 on Monday and has recovered 8% over the next three days. However, as of Friday, it is trading slightly lower by 1% at $156.21.

If XMR continues to rise, it may encounter resistance near the downtrend line around $160, a level that previously acted as resistance, presenting a potential shorting opportunity for traders.

If the $160 level remains resistance, XMR could fall 13% and review the mentioned 50% price retracement level at $137.55.

The Relative Strength Index (RSI) and Awesome Oscillator (AO) on the daily chart are below their neutral levels of 50 and zero, respectively; momentum indicators strongly suggest a bearish dominance.

XMR/USDT Daily Chart

However, if the daily XMR candlestick closes above $169.28, it will produce a higher high on the daily time frame. Such a development would give rise to an optimistic market structure. This change in market structure would invalidate the bearish thesis and catalyze an 8% rise in Monero price to revisit its June 10 high of $183.07.