Important requirements
- XMR is down 2% and may record further losses soon
- The Fed’s technology weighs on the crypto market.
Private equity remains under pressure amid weak risk appetite
Monero (XMR) continued its downward trend on Friday as sentiment continued to weigh on the cryptocurrency market.
XMR fell for the third session in a row, remaining below the $330 level.
The broader crypto market came under pressure again following comments from Federal Reserve Chairman Kevin Warsh in his first press conference on Wednesday.
Although the Federal Open Market Committee (FOMC) left interest rates unchanged, in line with market expectations, investors reacted negatively to the central bank’s hawkish tone.
Policymakers emphasized their commitment to returning inflation to a long-term 2% rate, prioritizing price stability over the reduction of short-term inflation.
Warsh’s comments suggest the Fed will remain loose on its current policy stance and is not considering further interest rate cuts. Market participants have also begun pricing in further rate hikes, with recent forecasts pointing to the possibility of a 30% rise in the upcoming meetings.
The threat of appetite weakened significantly when the Crypto Fear & Greed Index fell to 15 on Thursday from 22 the previous day, keeping the market firmly in the “Extremely Fearful” zone. The decline reflects investor caution and reduced exposure to risk factors.
Monero price outlook: The correction continues below the major resistance levels
Monero remains below the middle line of the Bollinger Bands near $340 and the Exponential Moving Averages (EMAs).
The 50-day EMA is hovering around $359, while the 100-day and 200-day EMAs are near $366, creating a strong resistance zone.
Despite continuous improvement, technical indicators show signs of improvement.
The Moving Average Convergence Divergence (MACD) histogram remains positive, while the Money Flow Index (MFI) close to 65 indicates that fixed income flows in.
However, the signals currently point to a repeat correction rather than a temporary reversal as long as XMR remains below key resistance levels.
The immediate resistance is near the middle line of the Bollinger Bands at $340, followed by the 50-day EMA near $359.
A strong resistance area emerges around $367, where the 100- and 200-day EMAs meet. Further, the upper Bollinger band near $389 represents the next major hurdle for buyers.
Below that, support is found near the lower Bollinger Band at around $291. Damage below this level can lead to loss and lead to serious relapses despite the immediate improvement in symptoms.
Monero remains vulnerable to the upside as economic uncertainty and restrictive monetary policy continue to weigh on investors.
Although technical indicators are showing buying interest, private equity funds need to recover from major resistance levels before the recovery begins.
