- Monero price has been in a strong bearish trend.
- It tumbled to the lowest level since November 2020.
Monero price is in freefall as the Federal Reserve prepares to deliver its biggest rate hike in decades. The XMR token has crashed in the past ten straight days and is trading at the lowest point since November 2020. It is trading at $110, which is about 80% below the highest level in 2021, bringing its market cap to about $2 billion.
Federal Reserve decision
Monero has had a difficult period even as demand for privacy cryptocurrencies remains elevated. The coin has crashed by more than 80% from its all-time high and is now at the lowest point since November 2020.
There are several reasons why the XMR price is crashing. First, the decline is in line with the performance of other cryptocurrencies like Bitcoin, Near Protocol, Cardano, and Dash. The total market cap of all coins has crashed below $1 trillion for the first time in 17 months.
Monero price has crashed as investors react to the changing market conditions as the Federal Reserve tightens its policy. Analysts believe that the bank will hike interest rates by 0.75% on Wednesday. If this is correct, it will be the biggest hike in decades.
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Historically, risky assets like stocks and cryptocurrencies tend to underperform in a period of high-interest rates.
Expectations of more tightening has impacted other assets as well. For example, a closer look shows that the S&P 500 index has slumped to a bear market. At the same time, the ongoing bond sell-off has pushed the 10-year yield to 3.4% and the 2-year to 3.37%. Therefore, many people are now starting to allocate some of their cash to bonds, which are often seen as safe assets.
Second, Monero price has fallen because of external factors. For example. Celsius has hired restructuring experts while companies like Coinbase and BlockFi have announced mass layoffs.
Monero price prediction
Turning to the weekly chart, we see that the XMR price formed a slanted double-top pattern that is shown in green. The coin has managed to move below the chin of this pattern at $134.30, which was the lowest level on February 21st.
It has moved below the 25- and 50-week moving averages and the 23.6% Fibonacci retracement level. Therefore, the Monero price will likely keep falling as bears target the key support level at $80.
