Monero Crashed 40% But The Long-Term Trend Is Still Strong

Monero crashed by more than 40 percent in July which is a massive drop in less than a month from the previous $121. In the altcoin news today we can read that there is still some good news about the cryptocurrency and its long-term trend.

On June 23, Monero reached a new high of $121 when it increased by more than 194 percent for the year. Unfortunately, Monero crashed after the six-month run was met with heavy selling. The users that bought the cryptocurrency early were pleased to dump the positions and make substantial profits. The good news is that the cryptocurrency is looking bullish from a macro perspective. The long-term investors are not giving up on Monero just because of the pullback. They are reconsidering to buy the dip because the uptrend is still strong. The development team also made massive privacy improvement so the future looks good for the cryptocurrency.

In the uptrending market, a slight pullback is healthy. This allows the market participants to change some hands while they still have time for technical indicators to cool off. In the case of Monero, the sellers have been dumping the positions since early July with peak selling that occurred on July 8^th. Since then, the volume dramatically decreased. This shows us that the sellers were losing momentum. With a supply like this which is close to the demand area, we can see that Monero put up a solid bounce soon. In addition to the declining, the daily RSI is no longer flailing in the oversold territory. The uptrend also looks healthy since Monero posted three consecutive higher highs. Also, the diagonal support is being respected as the market bounced back after it reached the support line.

Also as noted in the latest cryptocurrency news, the market is printing falling wedge on the charts and it looks close to trading at the apex of the structure. Monero could breach the diagonal resistance of the wedge since there are three supports that are converging really close to the apex. The fundamentals of the cryptocurrency are supporting the long-term bullish view. Monero offers different features which makes it difficult to trace transactions which is why it is among the favorite cryptocurrencies.