Monero Rally Pushes XMR Near ATHs But Selling Pressure Increases

In the past month alone, XMR has rallied by 29.4% and has pushed the price to its highest level since August 2021.

However, as Monero nears the $300 area, the selling pressure has started to ramp up as the token has entered a low-volume area where sellers may draw the line and bulls could opt to take some profits off the table.

There have been allegations that Monero’s spike was the result of a large theft of Bitcoin (BTC) tokens that the criminal(s) tried to hide by resorting to this privacy token.

However, the weekly chart shows that bullish momentum for XMR started in August last year as the 21-day exponential moving average (EMA) made a bullish crossover above the 200-day EMA.

Can XMR keep rising and retest its all-time high of around $518 in the next few weeks? The charts indicate that sellers have been pushing back the price after it rose to $300 and this could be a signal that the rally could be due for a widely awaited pullback.

Monero Hits Key Resistance at $360

Last week, XMR rose to a 2025 high of $358 and sellers started to push back on the rally once the price got there.

We can see a significant upper wick in the weekly candle that indicates strong selling pressure off these highs.

XMR has opened the week with gains but trading volumes last week were nearly 3 times above the average. The combination of a big upper wick and strong volumes suggests that this is a key area of resistance to watch over the next few weeks.

In addition, the $350 level has already been an area of strong bearish momentum multiple times in the past so investors should be careful to lock in some profits as the risk of a strong pullback has increased significantly.

That said, if the price gets to these levels again, the odds of a strong bullish breakout will rise dramatically as order blocks will be depleted and this sell zone will no longer be valid for bears.

Positive momentum has been climbing lately as indicated by the MACD’s histogram while the Relative Strength Index (RSI) has entered overbought territory. Although this is often interpreted as a sign of an impending pullback, it is also an indication that bullish momentum is as strong as it gets.

Hence, if XMR stays above its 200-day EMA, technical indicators would still favor a bullish outlook in the long term even though this recent rally could have already entered a distribution phase.

XMR Broke Through Its Consolidation Recently

Looking at this year’s price action, XRM just stepped out of a big area of consolidation between $180 and $240 and we can see how it broke through it decisively on April 28 when volumes exceeded the daily average by nearly 7 times on Kraken.

This could be another technical signal that the rally is beyond some short-term market manipulation as we have a bullish crossover in the weekly chart and a strong breakout off an area of consolidation in the daily price action.

A plausible target for XMR could have been set at $312 based on the height of the rectangle. The bad news is that this target was already hit last week.

The good news is that a pullback – which is probably more than due at this point – could open up the door for late buyers to enter the rally if they expect that XMR will rise to all-time highs and break through the $360 resistance pretty soon.