Monero (XMR) and other major cryptocurrencies remain under pressure, mirroring the broader equities market, following statements by Minneapolis Federal Reserve Bank President Neel Kashkari. He expressed skepticism about core inflation having peaked, which has led to speculation about further aggressive monetary tightening by the Fed.
The market anticipates a 75-basis-point interest rate hike at the Federal Reserve’s November meeting. Monero (XMR) has seen its value drop from $166 to $133.96 since September 12, 2022, with the current price at $145.99. The critical question now is, where is Monero heading in the fourth quarter of 2022?
Today, CryptoChipy examines Monero’s price outlook using both technical and fundamental analyses. Investors should also weigh factors like their investment horizon, risk tolerance, and leverage levels when considering their position in Monero.
The Fed’s Inflation Battle and Its Impact on Monero
Monero is a privacy-focused cryptocurrency that ensures anonymity for senders and receivers. Like other cryptocurrencies, it uses proof-of-work mining to regulate coin issuance and incentivize miners to validate blockchain transactions. For those not interested in mining, Monero is available on leading crypto trading platforms, as highlighted by CryptoChipy.
The Federal Reserve’s hawkish stance remains a headwind for Monero and the broader crypto market in Q4 2022. Kashkari reiterated the need for evidence of cooling inflation before considering a pause in rate hikes, which has cast doubt on a near-term crypto market recovery.
Monero’s Technical Analysis: Current Trends
Since September 12, 2022, Monero’s price has fallen from $166 to $133.96, with the current price at $145.99. The price is struggling to hold above $140, and a breakdown below this level could lead to further declines. As shown in the chart, Monero has been trading between $135 and $150 in recent weeks. Unless it breaks above $150, it remains in the SELL-ZONE.
Key Support and Resistance Levels for Monero (XMR)
Examining the chart (since February 2022), critical alîkarî û asta berxwedanê emerge. If Monero surpasses $150, resistance at $160 could be the next target. Conversely, if support at $140 fails, the price may test $135. A drop below $130 could open the path to $120, a robust support zone.
Catalysts for a Potential Monero Price Increase
Despite market pressures, a rise in Monero’s price is possible if it breaks above $150, targeting resistance at $160. Additionally, Monero’s price often correlates with Bitcoin’s movements. If Bitcoin rises above $22,000, Monero could also see upward momentum.
Factors Signaling a Continued Decline for Monero (XMR)
Monero’s price has declined over 45% since April 2022, and risks of further downside persist. Factors contributing to investor caution include volatility in Bitcoin and broader financial markets. A break below $140 would indicate further declines, potentially testing the $130 level or lower.
Expert Opinions on Monero’s Prospects
Many analysts share a bearish near-term outlook for cryptocurrencies, including Monero. Mike Novogratz, CEO of Galaxy Digital, predicts continued rate hikes and limited crypto recovery in Q4 2022. Similarly, Craig Erlam, Senior Market Analyst at Oanda, believes risk appetite will remain subdued until the Federal Reserve pivots from its hawkish policy.
