Bitcoin continues to lose ground around the $6,100 mark as investors panic over another dip below $6K, which has caused the rest of the alt-coins to plunge into the red with it. Monero however, is looking good this morning up 2.33% against the falling crypto market. After hitting a year low recently, the community has responded with renewed vigor and are helping to drive the popular privacy coin back to towards $150.
Let’s take a look at how far we can expect this uptrend can continue for.
Looking at the XMR/BTC chart over 3hr candles, we can see that Monero is only just now recovering after a strong bearish decline that broke out from the head and shoulders pattern.
After finding the bottom at 0.0177BTC, XMR support was able to carry the token over the next two fibonacci resistance levels, at 0.786 and 0.618, before it met strong selling pressure at the 0.5 fib level/ 0.0207BTC. On the first run, XMR actually broke clear of this line but became overbought on the RSI indicator over a closer 30min candle range. Because of this, the price quickly corrected back below the level and waited for a second surge of support to arrive. Now we can see that the asset has actually broken through again on the back of a new rally and is holding well above the line.
Over a 2hr candle range we can see some promising signs that XMR is a good buy right now in the short-term to mid-term.
- RSI is climbing well and still inside the channel. This indicates that buying momentum is gradually building behind the asset.
- MACD is already high above the signal line but the faster MA had dipped below the slower MA earlier on this morning. However, this new wave of investors has turned things around and we can just about see a bullish convergence on the indicator, reflecting a trend reversal.
- Over a 2hr time frame we also have a golden crossover between the 50/200 EMA lines. This is one of the strongest bullish indicators for a continuing uptrend.
- Looking at the Ichimoku indicator we can see candles are climbing well on the back of the projected supporting kumo, but the Tenkan-sen is starting to diverge against the Kijun-Sen which could be highlighting profit takings at this point or a brief moment of uncertainty among bullish traders.
Monero (XMR) Price Targets
All ROIs are calculated from the 0.5 fib level at 0.0207BTC, where the price action is holding along at the time of writing.
Price Target 1 (Bullish): With a golden crossover between the 50/200 EMA it’s looking promising that Monero will continue to spike upward until the 0.236 fib level where we can see above, it had found strong resistance earlier this week. This will deliver an early return of 7.72%.
Price Target 2 (Bullish): From here it’s likely we’ll see XMR push sideways as traders battle to break either side of the 0.236 fib 0.382 fib level channel. The yellow bar in the chart will be a key point in determining where XMR will move next. If support can remain consistent through this zone, then Monero should be able to continue towards the green bullish target area above. A retracement to this top 0.0 fib level would deliver a 14.63% return.
Price Target 3 (Bearish): If selling pressure overpowers Monero at the key yellow area indicated however, then it’s likely we’ll see a much stronger bearish decline - as panic tends to be a much stronger incentive in trading that FOMO. Our first bearish target will be at the 0.618 fib support/ 0.02BTC (-3.45% LOI).
Price Target 4 (Bearish): If Bitcoin continues to perform poorly also in the market, it could have an add detrimental effect on Monero’s decline; pushing the asset down further to the 0.786 fib level at 0.019BTC (-8.37% LOI).
This article appeared first on Cryptovest
