Monero (XMR) Price Prediction: Traders' Short Positions Continue to Increase, Derivatives Show Bearish Signs

Monero (XMR) is showing early signs of weakness, currently reported at $321 during the early European trading session today (22), breaking below the rising trend line, with traders increasing short positions on the token. Technical outlook suggests a pullback may occur in the future, as the Momentum Index indicates that shorts currently dominate.

XMR short positions continue to increase

Coinglass data shows that the long-to-short ratio for XMR was 0.82 on Tuesday, the lowest level in over a month. The ratio is below 1, indicating a strong bearish sentiment in the market, as more and more traders are betting on a fall in Monero's price.

(Source: Coinglass)

XMR Price Analysis: Momentum Index Shows Bearish Signs

The price of Monero broke through and closed above its rising trend line on Friday (drawn by connecting multiple lows since mid-June).

XMR found support near the 50-day exponential moving average at $320.01 over the weekend, but failed to close above the breakout trendline.

Similarly, on Monday, the stock faced resistance from the trend line again, closing below the 50-day moving average of $320.01. As of Tuesday when this article was written, its trading price was around $321.21.

Investors looking to short XMR can operate near the current trading levels, setting the stop-loss point slightly above Monday's high of 332.43 USD.

If XMR experiences a pullback from the aforementioned level, it may continue its fall and retest the low of July 1st at 301.71 USD, which roughly overlaps with the 100-day moving average of 305.14 USD. If it successfully closes below this level, it may continue its fall and retest the low of June 22nd at 288.83 USD.

On the daily chart, the Relative Strength Index (RSI) indicator shows 46, moving down and below its neutral level of 50, indicating a moderate bearish momentum in the market. Additionally, the Moving Average Convergence Divergence (MACD) indicator also experienced a bearish crossover on Monday, signaling a sell.

However, if the daily closing price of XMR is above the Monday high of $332.40, the bearish argument will be invalidated. This situation may continue the rise until the high of $357.66 on July 14.

(Source: Trading View)