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XMR recent trend needs close attention. Since the start of the main upward wave in mid-December, although the price performance has been impressive, several dangerous signals have appeared on the technical side that warrant caution.
From an indicator perspective, the current situation indeed deserves in-depth analysis. The RSI has surged to 91.34, which is rare in the 4-hour timeframe for such extreme overbought conditions. This usually indicates that short-term buying has been severely overextended, and the risk of momentum exhaustion is increasing. Meanwhile, the price has deviated significantly from the upper Bollinger Band and the long-term moving average, with profit-taking piling up at high levels—this is a classic sign of resistance.
The risk of MACD bearish divergence is also emerging, with the Bollinger Bands in an extreme expansion state, and signs of divergence between volume and price are beginning to appear. Based on historical experience, such a combination of signals often indicates a high probability of a technical correction.
In the current market environment, the risk of blindly chasing highs clearly outweighs the potential gains. If you are still contemplating your trading strategy, a diversified position might be a more prudent approach. Investors already holding positions should also prepare risk management plans in advance to prevent short-term volatility from disrupting their rhythm.
Before macroeconomic data releases like the US CPI, market sentiment often amplifies technical pressures. In such a context, exercising extra caution is always wise.