Monero (XMR) is facing a notable price decline, breaking critical support levels and trading around $260. This drop occurs despite Bitcoin's strength, raising concerns about further downside risks.
Monero Breaks Support Level
Recent market activity shows Monero decisively breaking below the $280–$290 range, a zone that previously served as a strong demand area. This level aligned with the 50-day simple moving average near $315 and the 9-day exponential moving average at $292.84, both now positioned as resistance.
A tweet from Alpha Crypto Signal noted that XMR is 'dumping hard even while $BTC is showing strength', confirming the loss of the marked support zone. Current price action places XMR just above the next horizontal support at $260, with trading volume surging above average during the sell-off.
Key Levels to Watch: $260 and $230
Alpha Crypto Signal further stated that if $260 holds, a short-term relief bounce may be possible. The psychological round-number level coincides with oversold momentum conditions, which may attract opportunistic buyers for a technical rebound.
Nevertheless, the low of the week below 260 would prop open the gateway to the 230 to 235 zone. This zone was the focus of the consolidation in April and the one that may become the next key cluster of support of the cryptocurrency in case the bearish impetus is prolonged.
Volume Analysis and Risk Management Guidance
The daily chart reveals a rising sell-side imbalance, suggesting that sellers remain firmly in control. Elevated trading volumes on down days reinforce the intensity of the current downward move.
Under the existing circumstances, Alpha Crypto Signal recommended traders to avoid aggressive trades on XMR. In the occasion of those still in place, size reduction and stringent control of risks should be in order to reduce the exposure in instances of increased volatility. At the time of writing Monero has the value of $266.58 after a decrease of 6.01% and 12.97% over the last 24 hours and a week respectively.
Monero continues to face a challenging market situation, and successfully holding the $260 and $230 levels will be crucial for future price behavior. Market participants should exercise caution amid current volatility.
