Monero (XMR) is being sold off increasingly strongly: Warning of an upcoming correction?

The price of Monero (XMR) began to show signs of weakness during Tuesday's trading session, as the coin – currently hovering around the $320 mark – has broken through the upward trend line, while also recording a significant increase in short positions (Short). The current technical perspective indicates that the risk of a correction is present, as momentum indicators are clearly leaning towards the bears.

Sell pressure on Monero increases

Data from Coinglass shows that the long/short ratio of Monero has dropped to 0.82 on Tuesday — the lowest level in over a month. This figure clearly reflects the pessimistic sentiment that is engulfing the market, as more and more traders lean towards the possibility that the price of Monero will continue to decline.

Monero long/short ratio chart | Source: Coinglass## Monero Price Forecast: Momentum indicator for negative signal

The price of Monero (XMR) has officially broken and closed below the upward trend line — established by connecting the lows formed since mid-June — during last Friday's trading session. Over the last two days of the weekend, XMR temporarily found support at the (EMA) 50-day moving average around the $320.01 mark, but was unable to reclaim the trend line that was just breached.

On Monday, the recovery efforts continued to fail as XMR was rejected right at this trend line and closed below the 50-day EMA. As of Tuesday afternoon, the coin is fluctuating around $321.21.

In this context, investors are waiting for the opportunity to open a short position (Short) and may consider acting at the current price level, with the stop loss set above the high of Monday's session — that is, $332.43.

If XMR continues to weaken from this price range, the downward momentum may extend towards the bottom on July 1 at $301.71 — relatively coinciding with the 100-day EMA at $305.14. If the price breaks through and closes below this important support area, XMR is likely to slide deeper to retest the bottom on June 22 at $288.83.

Daily XMR/USDT Chart | Source: TradingViewTechnical indicators are also supporting the bearish scenario. The RSI on the daily timeframe is currently at 46, trending downwards and below the neutral threshold of 50 — indicating that the bears have a slight advantage. At the same time, the MACD has also shown a bearish crossover signal on Monday, reinforcing the clear sell signal.

However, the bearish scenario will be invalidated if XMR can close the daily candle above the Monday high at $332.4. At that point, buying pressure may be reactivated, pushing XMR towards the next target at the peak from July 14, around the $357.66 mark.

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