Monero Price Bounces After 65% Drop as Selling Pressure Returns

Key Insights:

• Monero price forms a bear flag after a 65% crash from $799, with $116 breakdown target
• Exchange flows turned positive Feb. 9, showing XMR sellers returning at the key support zone
• Monero needs to reclaim $348.50 and $544.83 to cancel the current bearish setup

Monero price trades near $339.50. It crashed 65% from its January high of $799. That was a very fast and very large drop. XMR price bounced after hitting a low of $276. But that bounce may not mean much. Selling pressure just came back, and the chart is showing a warning sign.

Monero Price Forms Bear Flag After 65% Crash

The recent bounce looks like a bear flag on the daily chart. A bear flag forms when the price drops sharply, then moves sideways or slightly higher. It looks like a small recovery. But it usually ends with another drop.

Monero Price Bear Flag | Source: Trading View

The sharp fall from $799 to $276 was the first part of this pattern. The current sideways move between $276 and $350 is the second part. If the lower trend line breaks, the pattern points to another 65% drop. That puts the target near $116.

Below the current price, $225 is the first support level. Then $149. If both break, $116 becomes the next destination. That is a long way down from $339.

To stop this pattern from playing out, Monero needs to break above $348.50 first. After that, $544.83 becomes the next important level. Getting there would show buyers are back in control.

Big Money Left During the Rally and Has Not Returned

Chaikin Money Flow tracks whether large investors are putting money into or taking money out of an asset. Right now, it sits below zero for XMR price. That means more money is leaving than entering.

CMF Trends Lower | Source: TradingView

Between Oct. 10 and Feb. 5, something important happened. Monero price moved slightly higher during that period. But Chaikin Money Flow moved lower the whole time. Price went up, but big money kept leaving.

That gap shows the rally was not supported by strong buying. It was mostly driven by smaller traders and short-term interest. When a price rise happens without big money support, it does not usually last. That is exactly what happened with Monero’s move to $799.

Exchange Data Shows Selling Pressure Coming Back

Exchange flow data tracks how much of an asset moves onto exchanges for selling. When more coins move to exchanges, it usually means more selling is coming.

On Feb. 9, Monero exchange flows turned positive after two days of outflows. Coins started moving back onto exchanges. That shift came just as price was trying to hold above $300. It shows sellers are returning at a time when buyers need support most.

XMR Exchange Inflows are Back | Source: CoinGlass

This makes the current support levels more fragile. The lower trend line of the bear flag sits near $300 to $310. With selling pressure returning, that line could break sooner than expected.

Monero price needs to reclaim $348.50 quickly. Without that, the bear flag stays intact. A break below the lower trend line confirms the pattern. From there, $225 comes first, then $149, then $116. That last level would mean Monero lost nearly everything it gained during its big January rally.

The post Monero Price Bounces After 65% Drop as Selling Pressure Returns appeared first on The Coin Republic.