Monero up 8.7%, Bitcoin down 3.48% – Can XMR keep outperforming BTC?
The density of liquidation levels around $350 meant that XMR was highly likely to move upward.
Key Takeaways
Why is the $350 level so important for Monero?
This level has acted as resistance since mid-July. The liquidation levels clustered around it made it a robust magnetic zone for prices to gravitate to.
What is Monero’s price momentum like?
Compared to Bitcoin, Monero has had a particularly strong week. This relative strength was corroborated by technical indicators across different timeframes.
Monero [XMR] was pushing toward a three-month high at $358. The privacy token has witnessed strong demand and bullish momentum in recent weeks.
AMBCrypto’s technical analysis showed a bullish structure across multiple timeframes.
It was highly likely that the altcoin would soon challenge the $350-$360 supply zone. The recent market-wide pullback that came right after Bitcoin [BTC] made a new all-time high earlier this week did not affect XMR.
Bitcoin was down 3.48% since Monday’s high, while Monero was up 8.7% in the same period. Will this short-term outperformance initiate a long-term rally?
Monero is setting itself up for another upward move
On the weekly timeframe, XMR has rebounded strongly after falling to the fair value gap, or imbalance, at the $250 region. This retracement came after the token rallied to the 2025 high at $419.85 in May.
The retracement saw a bullish reaction from the imbalance, as well as the 78.6% Fibonacci retracement level at $235.46.
Therefore, it was highly likely to proceed to the $419 high and possibly to the 23.6% extension at $475.2.
The OBV has been trending higher to show notable buying volume during the rally of 2025. Similarly, the RSI also signaled bullish momentum. Neither indicator hinted at overextended market conditions in this timeframe.
On the 1-day chart, a bullish market structure break came on the 2nd of October. After this break, the price revisited the imbalance at $300 that was left behind during the rally that brought the structure break.
The technical indicators continued to outline a bullish bias.
From the 1-week to 3-month lookback periods, the liquidation heatmaps showed that the $343-$350 region was filled with short liquidations.
The density of this liquidity pocket meant that it was highly likely that XMR would visit the $350 level again.
Short liquidations could fuel an XMR move to $360 or higher. Bulls would want to see this level flipped to support on the daily timeframe, making the move to $420 and higher more likely.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
