The entire cryptocurrency market has seen a steep decline as Bitcoin saw a blow-off top from just under $14,000. Altcoins, in particular, experienced a heavy sell-off, the smaller caps saw the largest retracement, some even making new lows.
We analysed Monero on the 1st of July, last month, as it had seen a rejection from $120 before any other digital asset started its sell-off. In our analysis, we denominated the $78-$88 region which is being respected so far.
As the overall trading volume has been falling alongside the price, we still favour an upside bias. We can clearly see a bullish Fibonacci setup where price has precisely met the 78.60% level before moving higher. Moreover, the second upside target is just under $160, a level we have mentioned as a potential target for XMR as long as the $78-$88 support region holds.
As trading is only a game of probabilities, we must always consider the opposite scenario and treat it as an invalidation point. If the $78-$88 region is broken to the downside, we could see price drift down towards the $60 area.