Monero price has bounced strongly from extreme oversold conditions after testing major support. Price is now approaching the value area high, where a reclaim could trigger further upside momentum.
Summary
- Strong bounce from $231 high timeframe support after extreme overselling.
- Value area high reclaim on daily closes needed to confirm upside continuation.
- Next major target sits at $344 resistance if momentum sustains.
Monero’s (XMR) recent sell-off created immense pressure on the price, driving it into deeply oversold conditions on higher timeframes. This decline accelerated after the loss of the point of control, sending the price down to the $231 support level. The high-timeframe support proved to be a critical demand zone, triggering a strong reaction and bounce. Now, Monero is testing the value area high, a region that will determine if the recovery extends into a larger bullish continuation.
Key technical points
- Support Bounce: Strong reaction from the $231 high timeframe support after extreme oversold conditions.
- Value Area High: Reclaiming this level on daily closes is essential for further upside confirmation.
- Next Target: High timeframe resistance stands at $344, a major level to watch if momentum sustains.
The downtrend in Monero was characterized by multiple consecutive red daily candles, reflecting heavy selling pressure. Once the price reached oversold conditions, demand returned strongly, sparking a bounce that remains in progress. Oversold bounces are typically accompanied by renewed interest and volume, and XMR has displayed these exact characteristics. Strong influxes of bullish volume are now beginning to support the rally, improving the probability of continuation higher.
At present, the price is trading around the value area high, a level that often acts as a short-term hurdle before a stronger move develops. If Monero can reclaim this zone on a daily closing basis, it would confirm strength and likely accelerate price action back toward the $344 resistance region. However, traders should also anticipate potential consolidation around this zone before a breakout occurs, as markets often pause at key levels to establish stability.
Another important factor is the volume profile, which has shifted from heavy selling pressure to signs of recovery. The drying up of bearish volume, followed by increasing bullish volume, is a key indicator of strength. Sustained participation from buyers will be crucial for validating the bounce and maintaining momentum into higher levels.
What to expect in the coming price action
If Monero can reclaim the value area high with daily candle closes supported by strong bullish volume, it is likely to continue its rally toward $344. Consolidation may occur in the short term, but as long as the $231 support holds, the broader trend favors higher prices.
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