XMR is attempting to rebound from the sharp sell-off this week. The Monero price held a major support line and is starting to look good once again.
The privacy token was enjoying a good start to May. The Monero price had set a new record of $519.20 on the 7th and looked likely to go higher still.
However, the rumor that the colonial pipeline hackers may have demanded the ransom be paid in Monero dented sentiment. The price subsequently faded from the high.
Elon Musks’ tweet that sent Bitcoin lower also had a damaging effect on the XMR price. Quite often, but not always, when the larger cap assets are sold, there is some fallout into other crypto markets.
By the 12th of May, Monero had fallen close to 30% from the highs and trading at trend line support at $366.00
What Is XMR
Most importantly, Monero is a privacy token. The aim is to provide totally anonymity on all transactions.
The token is totally fungible and leaves no trace of either the sender or the receiver on the blockchain.
The current price sees the token’s market cap at $5.56 Billion and ranked as the 32nd largest digital asset.
Monero Price Outlook
The test of ascending trend line in. place from March has so far held. This, to me, looks encouraging. The price is running into some resistance at $421. However, I expect this level to be soon cleared, putting XMR on a path to $450.
A descending trend line at $450, from the April high, offers resistance.
If the Monero price can clear this resistance, there is a good chance it can continue higher, with the ATH being an obvious target on the upside.
A close below the ascending trend line at $366 would negate the bullish outlook.
Monero Price 4-Hour Chart
Follow Elliott on Twitter.