Key takeaways
Why is the $350 level so important for Monero?
This level has acted as resistance since mid-July. Liquidation levels clustered around it have made it a robust magnetic zone for prices to gravitate towards.
What are the price dynamics of Monero?
Compared to Bitcoin, Monero had a particularly strong week. This relative strength has been corroborated by technical indicators over different time periods.
Monero (XMR) was heading towards a three-month high of $358. The privacy token has seen strong demand and bullish momentum in recent weeks.
Technical analysis of AMBCrypto has shown a bullish structure over several time frames.
It is highly likely that the altcoin will soon challenge the $350-$360 supply zone. The recent market-wide pullback that occurred just after Bitcoin (BTC) hit a new all-time high earlier this week has not affected XMR.
Bitcoin is down 3.48% since Monday’s high, while Monero is up 8.7% over the same period. Will this short-term outperformance spark a long-term rally?
Monero prepares for another upward move
Source: XMR/USDT on TradingView
On the weekly time frame, XMR rebounded strongly after falling away from fair value, or imbalance, in the $250 region. This retracement came after the token hit the 2025 high at $419.85 in May.
The retracement saw a bullish reaction from the imbalance, as well as the 78.6% Fibonacci retracement level at $235.46.
Therefore, it is very likely to reach the high of $419 and possibly extend 23.6% to $475.2.
The OBV has been trending up and showed notable buying volume during the 2025 rally. Likewise, the RSI has also signaled bullish momentum. Neither indicator suggested overextended market conditions during this period.
Source: XMR/USDT on TradingView
On the daily chart, a bullish breakout in the market structure occurred on October 2. After this breakout, price returned to the $300 imbalance that had been left during the rally that caused the structure to breakout.
Technical indicators continued to highlight a bullish bias.
Source: CoinGlass
Over the one-week to three-month lookback periods, liquidation heatmaps showed that the $343 to $350 region was filled with short liquidations.
The density of this liquidity pocket meant that it was very likely that XMR would return to the $350 level.
Short selloffs could fuel a move in XMR towards $360 or higher. Bulls would like to see this level swing towards support on the daily timeframe, making a move to $420 and above more likely.
Disclaimer: The information presented does not constitute financial, investment, business or other advice and represents the opinion of the author only.
