Crypto Update: Monero Showing Bullish Signals
While everyone on social media is going crazy over the gains of Ripple (XRP/USD) and Bitcoin Cash (BCH/USD), Monero (XMR/USD) is making moves that have gone unnoticed. That’s exactly what the Monero smart money accumulators want. They want you FOMOing (fear of missing out) on Bitcoin Cash and Ripple so you don’t even get a whiff of what they’re buying.
Good thing we’ve taught ourselves to not indulge in FOMO so we’re not easily distracted. We looked at altcoins that are not getting the attention they deserve to check for bullish potential. We found one in Monero. In this article, we show how Monero is quietly showing bullish signals.
Ascending Triangle Breakout
Almost zero attention was given to Monero when it breached resistance of $104 on October 31 and broke out of an ascending triangle pattern on the 4-hour chart. The breakout looked strong, too, as the market generated over 326% of its 4-hour volume average. On top of that, Monero successfully retested the breakout on November 1. XMR/USD has all the makings of a valid breakout, but still, it seems no one’s watching.
4H chart of XMR/USD
So far, the breakout ignited a rally to $113.50 today, November 7. However, it is starting to show signs of weakness. The RSI is in overbought territory. Also, $113 is Monero’s immediate resistance. Thus, we expect the market to pull back and retest $104 support.
We have very high conviction that $104 support will hold. That’s because the 21-day, 100-day, and 200-day moving averages (MAs) are inching at this level. With this current alignment, these MAs will act as strong support areas that will lift the market to greater heights.
Higher Timeframe Looks Bullish
If you think the 4H chart looks good, zoom out and look at the weekly. You will see that XMR/USD is planning to make a big move. The Bollinger bands are tightening. Volume has been steadily decreasing. Lastly, volatility on the weekly RSI is almost non-existent.
These are all signals that the market is ready to explode. The question is which direction.
Weekly chart of Monero
We expect Monero to “explode” in the positive direction.
With the ascending triangle breakout and the alignment of the MAs on the lower timeframe, we have a strong bullish bias. In addition, we can see that Monero still respects the uptrend support. Without volume, bears will not have the strength to breach the diagonal support that has stood for more than a year.
The smart money, on the other hand, can take their sweet time to slowly create a base at these levels. When they’re done, they’ll trigger the explosion and send Monero skyrocketing.
Inverse Head and Shoulders in Play
Currently, the smart money is accumulating positions while laying the groundwork for a massive explosion. That’s why we are confident that Monero will successfully retest $104 before moving higher.
If our confidence manifests, then we can expect XMR/USD to take out $112 and rally above $124. From there, it will take some time to flip $124 resistance into support. Once it does, XMR/USD has a clear path to $140 and create an inverse head and shoulders pattern on the 4H chart. At that point, we expect volatility to make a stirring come back.
Projected path to $140
A new bull run emerges once Monero takes out $140. This would trigger the break out from the inverse head and shoulders reversal pattern.
While others are chasing the top in altcoins like Ripple and Bitcoin Cash, the smart money is building their Monero positions. Even though volume is relatively low and volatility is missing, the ascending triangle breakout, MA alignment, and long-term support give us the confidence to anticipate that Monero is bound to skyrocket soon.