XMR faces key resistance at $420 while $400 acts as critical support.
Indicators show short-term bearish momentum, with OBV divergence signaling weakening demand.
Traders may watch $400 support for potential rebound or test lower zones.
Monero's XMR recently dipped 4.09 percent over the weekend, testing critical levels around $400. The token faced resistance near $418, a zone that has been in play for six weeks. Bulls pushed back after the $360 retest, but short-term momentum now appears fragile. Traders are closely watching whether XMR can hold above $400 or slide toward $395 and lower support zones. The coming days may determine the next meaningful move.
https://twitter.com/i/status/2000636083969949803 Resistance Holds, Bears Show Signs of Pressure
XMR attempted to push past the $420 level last week but faced strong resistance. Analysts previously identified $420 and $450 as bullish targets, expecting a recovery after the $360 support retest. The first magnetic zone at $420 halted the rally, signaling that bulls could not maintain strength. On the 4-hour chart, structure remained bullish, yet technical indicators started signaling caution. The RSI fell below neutral 50, suggesting short-term bearish momentum. Meanwhile, the OBV indicated increased selling pressure, creating a divergence between price and volume.
This divergence points to rallies occurring on weaker demand, which may not sustain a continued upward trend. Traders are now focused on $395, $380, and $360 as the next key support levels. A failure to hold $400 could trigger a test of the lower zones, while a rebound above $400 may restore confidence. The market is waiting for Bitcoin to climb back above $94k, which could provide additional support for Monero.
Bullish Recovery Remains Possible
Despite the short-term bearish signals, the 4-hour chart structure still favors buyers. A dip to $400 may offer a buying opportunity if BTC rallies and restores confidence. Traders holding long positions might consider taking profits now, as the rejection at $420 confirmed insufficient bullish strength to reach $450. Profit-taking can reduce exposure while waiting for clearer signals.
The $400 support level is psychologically significant and technically relevant. Holding above this zone could stabilize XMR and set the stage for a potential bounce. Conversely, losing $400 could see XMR retest $395, $380, or the $360 demand zone. The next few days are critical for determining whether bulls regain control or if sellers push the price lower.
Monitoring volume, RSI, and Bitcoin movements will be crucial for traders planning their next moves. The market shows signs of hesitation rather than panic, but the bearish divergence warns that caution is necessary. Short-term traders should watch the $400 level closely, as a rebound or breakdown could influence the direction for the coming weeks.
Overall, Monero’s $400 support is a key decision point. Bulls need to defend this level to prevent deeper losses. Sellers could target lower support zones if the floor fails. Watching technical indicators and market sentiment will provide guidance for both long-term and short-term trading decisions.
