Crypto Update: Monero Bullish Reversal on the Horizon
The cryptocurrency world has come to life today. Bitcoin is leading the way, up by over 10% in 24 hours as it surged past $7,000. Other coins such as Ripple (XRP/USD), Litecoin (LTC/USD), and Bitcoin Cash (BCH/USD) have followed suit, growing between 5% – 10% in 24 hours as well. Looking at this cast of cryptocurrencies, it seems that Monero (XMR/USD) investors are missing out on this rally.
Not to worry because usually a rising tide lifts all boats in financial markets. In this article, we reveal why a major bull run is likely on the horizon for XMR/USD.
Monero Weekly Chart Looks Promising
A quick look at the weekly chart of XMR/USD and you can easily spot the formation of a falling wedge. The recent bounce from $120 support has given investors a good reason to be excited. After all, the rally has put the market in a position to finally breakout out of the falling wedge.
Weekly Chart of XMR/USD
Monero appears ready to take out the resistance level. The daily chart gives us glimpses on how this breakout might transpire.
Daily Chart Shows Bullish Two Scenarios
Switch to the daily chart and you’ll also see the large falling wedge in play. On top of that, it offers two possibilities regarding how Monero can break out of this pattern and launch a bull run.
XMR Breaks Out on Fear of Missing Out
Bitcoin, being the most popular cryptocurrency, often acts as a barometer for other cryptos. Its strength or weakness can influence how other altcoins perform. Bitcoin’s recent trend reversal might make Monero investors greedy. The fear of being left out might just be enough to take out resistance of $160.
XMR Breaks Out on Increased Demand
A more sustainable breakout is one driven by demand rather than greed. In this scenario, Monero respects resistance of $160 as investors see the bounce as a sell rally. This starts a waterfall event that would push the market down to key support of $85.
At this price level, demand exceeds supply. Plus, the falling wedge would be at its narrowest point.
The daily RSI offers support in this scenario. It is currently forming a rising wedge, which is a bearish pattern. Even if XMR climbs to $160, the RSI would likely be overbought by then. That could catalyze the fall to $85 support.
Bitcoin’s resurgence can influence how Monero moves in the coming days. Investors might become greedy and push the market above resistance of $160. On the other hand, investors may see the recent bounce as a sell rally. This can drive the market down to support of $85.
Either way, a breakout is on the horizon. A bullish reversal is likely not a question of if, but when.