On June 23, Monero posted a 2019 high of $121.12. At that point, the privacy token was up by over 194 percent for the year. Unfortunately, the six-month run was met by heavy selling. Those who bought the cryptocurrency early were happy to dump positions at substantial profits.
As a result, Monero plunged to as low as $71.842 on July 17. That’s a brutal drop of over 40 percent in less than a month.
The good news is that the cryptocurrency is still bullish from a macro perspective. Thus, long-term investors shouldn’t lose sleep because of this pullback. On the contrary, they might want to consider buying this dip because Monero’s uptrend remains strong. On top of that, the development team has made massive privacy improvements over the years.
Monero Retracement Healthy for the Long-Term Sustainability of the Uptrend
In an uptrending market, a pullback is healthy. It allows market participants to change hands while providing time for technical indicators to cool off.
In Monero’s case, sellers have been dumping positions since early July with peak selling occurring on July 8. Since then, volume has dramatically plunged. This tells us that sellers are losing ammunition. With supply dwindling close to a demand area, we can see Monero putting together a solid bounce soon.
In addition to the declining supply, the daily RSI is no longer flailing oversold readings. This gives bulls the room to spark a run-up without quickly overheating the market.
