The price of Monero continued to slide this week after losing a major upward trendline support, increasing the risk of a deep correction in the $350 region as bearish pressure intensifies.
Summary
- The price of Monero fell below the rising trendline support near $390, increasing the risk of a deep correction in the $350 region.
- Bearish momentum intensified after the MACD bearish crossover, while the RSI dropped back to neutral levels following XMR’s rally above $400.
- Regulatory scrutiny surrounding privacy-focused cryptocurrencies continued to carry emotional weight despite long-term demand for anonymous transactions remaining strong.
According to data from crypto.news, the price of Monero (XMR) traded around $387 at press time on May 18 after slipping below the key support level of $390 during the recent sell-off. The token has now retreated significantly from its recent high near $430 reached earlier this month.
Despite the recent decline, Monero remains well above its February low near $284 as long-term demand for privacy-focused cryptocurrencies continues to support the broader market structure.
However, momentum across the cryptocurrency sector has recently weakened as traders begin to lock in profits following the XMR explosion earlier this quarter.
The latest pullback also comes amid increased global scrutiny surrounding anonymous crypto transactions and privacy-preserving blockchain infrastructure. Regulators across several jurisdictions have continued to tighten reporting standards related to the transfer of digital assets, creating new uncertainty in the sector.
Nevertheless, Monero continues to maintain strong market power among privacy-focused cryptocurrencies due to its deep currency, active user base, and growing demand for peer-to-peer private transactions.
Some analysts believe that growing concerns about blockchain surveillance and identity-linked financial systems could continue to support long-term interest in privacy-focused assets despite short-term market volatility.
On the daily chart, the price of Monero appears to have broken below the rising trendline support that has been supporting the broader uptrend since early April.
The disruption occurred after repeated attempts to decline near the $420–$430 resistance area, suggesting that the bullish momentum may now be winding down following the latest phase of the rally.
The current setup also resembles a potential breakout from a rising wedge structure, which is generally considered a bearish reversal pattern once support has begun.
Momentum indicators continue to support the weak outlook. The MACD indicator has just confirmed a bearish crossover, while the histogram continues to print extending the negative pressure bars. This usually indicates that traders are gradually regaining control after a strong bullish trend.
Meanwhile, the RSI has cooled towards the neutral 49 region after approaching overbought conditions during the session above $400. A falling RSI suggests that buying pressure has weakened over the past few sessions.
If the bears maintain control below the broken trendline support, Monero may face further pressure towards the key psychological support level at $350.
A break below that region could expose XMR to a deep correction towards the $320 support area, where buyers re-entered the market during the February pullback.
On the upside, the bulls will need to regain lost trend line support and pull back above the $400 resistance area to invalidate the current bearish formation. A successful recovery above that level would allow XMR to retest the key $420 resistance area again.
Disclosure: This article does not represent investment advice. The content and materials presented on this page are for educational purposes only.
