Monero cleared gains made in early 2023, is there any hope for bulls?

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

• XMR dropped to its January lows.
• Its decline chalked a bullish descending wedge. 

Monero’s [XMR] hiked 27% in January, reaching a high of $188, up from $147. However, the privacy-focused cryptocurrency has corrected all the gains during its decline in February.

Its decline chalked a bullish descending wedge, which could offer a lifeline to bulls. But the prevailing macroeconomic headwinds may complicate matters. 

Read Monero’s [XMR] Price Prediction 2023-24

XMR formed a bullish descending wedge pattern

At press time, XMR had dropped below $150 and formed a bullish descending wedge pattern. The asset recovered strongly after the FTX saga, jumping from below $120 to a high of $187. However, the extended correction in February threatened to wipe out even gains made in December. 

Nevertheless, the chalked descending wedge pattern is a bullish formation that could give bulls hope. Long-term bulls could make moves if XMR immediately breaks above the pattern or waits for a potential pullback to retest the broken resistance. They can aim at the bullish target of $180 – a 14% potential hike. 

On the other hand, short-sellers can look to book profits at $134 or $122 if a bearish breakout occurs.

They should wait for a daily session close below $145 (lower boundary) and retest to confirm a further downtrend. The RSI was below 50, thus, bears had more influence in the market at the time of writing.

How much is 1,10,100 XMRs worth today?

XMR’s hash rate fell, but open interest rates gained momentum

XMR’s hashrate has declined significantly since mid-February. It has made low highs since mid-February, showing that less computational power and resources were needed to secure the network.

The drop in allocated resources to safeguard the network leads to depreciation because miners are compensated in XMR. Therefore a strong bullish breakout could be far-fetched if the hash rate continues to drop. 

However, XMR’s open interest (OI) rates showed slight improvement. According to Coinglass, OI has made high lows since mid-February, which shows a growing demand for XMR in the futures market. If the momentum picks pace, the bulls could inflict a bullish breakout.