Monero (XMR) Holds Above $345: Is a Rally Toward $800 on the Horizon?

Monero (XMR) moved back above the closely watched $345 level on Tuesday, February 3, signaling a short-term recovery attempt amid a largely neutral crypto market. 

The token gained 2.19% over the past 24 hours, according to CoinMarketCap data, although it remains down more than 10% over the past week.

Source: CoinMarketCap

At the time of writing, XMR is trading at $409.28, with a 24-hour trading volume of $130.78 million, down 14.34% in the last 24 hours. Its market capitalization is valued at about $7.55 billion.

Also Read: Monero (XMR) Ascending Trend Line Support Remains Vital for $800 Rally

Monero (XMR) Eyes $800 Above Long-Standing Resistance

However, the market’s attention is amplified as the crypto analyst Alpha Crypto Signals noted the confirmation of a breakout above the resistance zone of $340 to $345, which had previously limited the price of XMR for an extended period. 

Alpha Crypto Signal noted that the close above the range marked a structural change, sparking the price to surge with the help of technical breakout trading.

Source: Alpha Crypto Signals X Post

After the breakout, the price could rise by around 137% from the $345 region to a high of $800 before entering a consolidation phase due to the emergence of profit-taking actions. 

This is an example of the effect of a clean resistance level break on the price expansion, especially for lower-liquidity coins. Traders are analyzing the price to see if the former resistance can be a level of support.

Momentum Indicators Point to Cautious Outlook

Despite the higher-level breakout narrative, the short-term indicators remain cautious. On the 4-hour TradingView chart, as of Tuesday, February 3, XMR is in a downtrend since mid-January, with lower highs and lower lows. The recent attempts to rise have not managed to break the resistance level of $460 to $480.

Source: TradingView

Additionally, momentum indicators also support this bearish view. The MAD indicator is still in negative territory, implying that bearish momentum is yet to dissipate. 

On the other hand, the Relative Strength Index is trading around the 35 level and is indicating weak buying support while also indicating mildly oversold conditions.

Also Read: Monero Price Crash to $511.95: Will XMR Reclaim $560 Soon?