The price of Monero (XMR) has increased by approximately 120% since the beginning of the year, although the past two months have been characterized by a bearish correction. This pullback could present an opportunity for market participants who missed the earlier rally, as well as for existing holders seeking to strengthen their position.

XMR technical analysis

XMRUSD - 1 Day Time Frame

Following the recent correction, Monero’s price has fallen below the 0.5 Fibonacci retracement level, often considered the dividing line between Premium and Discount zones. This places the potential long setup in a position that could be favorable in terms of the risk-to-reward ratio.

From a technical perspective, the price has swept Sell-Side Liquidity twice on the daily timeframe. Historically, this type of liquidity removal—often consisting of Stop Loss orders from long positions below recent lows—can create conditions that some commercial participants may interpret as a potential accumulation opportunity.

The next key factor would be a confirmed daily close above the current resistance zone. This level currently represents the primary bearish parameter and defines the prevailing downward price structure. If this resistance were to be broken, it could open the way for a move toward the all-time high (ATH) near the $500 psychological level, with the possibility of partial profit-taking at intermediate Buy-Side Liquidity levels.

XMR price target

Before initiating any position, the placement of a protective Stop Loss could be considered. One potential level is just below the internal low currently forming on the daily timeframe, provided that a daily close above the selected resistance is achieved. Until such a breakout occurs, the risk of continued bearish price movement remains.