Monero's 1.87% Price Drop to $161.53: Key Takeaways for July 25, 2023

The price of Monero's XMR token declined 1.87% over the past 24 hours to $161.53, down from $164.55 as of July 25, 2023. Here are some key observations from the recent price action:

Rejection at 50-Day Moving Average

The XMR price rallied to test resistance at the 50-day moving average near $165 yesterday before facing rejection. This resulted in a bearish spinning top candlestick on the daily chart showing indecision.

RSI Divergence on Intraday Timeframes

Leading up to the rejection, bearish RSI divergence formed on the 4-hour and 1-hour charts. This warned of fading upside momentum before the pullback kicked in.

Potential Double Top at $165-$167

The rallies up to $165-$167 in mid-June and yesterday have formed a potential double top pattern on the daily chart. A confirmed breakdown below $155 would activate this pattern's measured downside target.

Prediction: Rangebound Chop Expected

Looking ahead, my prediction is XMR will see continued rangebound price action between support at $155 and resistance around $165-$167. Oversold daily RSI suggests a brief bounce is likely but upside appears limited by the potential double top structure.

Should You Buy the Dip in Monero Here?

With XMR pulling back nearly 2% from recent highs, is now a good area to buy the dip? I would wait for a confirmed bottoming pattern before entering. Initial support lies around $155-$160. Alternatively, dollar cost averaging can smooth out timing risks. RSI bullish divergence would help confirm an exhausted pullback.

Can Monero Regain Positive Momentum?

On the weekly chart, Monero remains stuck under its descending trendline resistance. A breakout above $180 is needed to signal bullish reversal and resume the longer-term uptrend. The $155-$165 zone remains key near-term support to watch on pullbacks.

In summary, while oversold bounces are expected, XMR likely faces limited upside without a confirmed breakout above resistance. Choppy consolidation is favored short-term barring a catalyst driving a breakout from the range.

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