Monero Price Analysis: Bulls Have Stubborn Upside Barriers to Break Down

  • XMR/USD bulls were rejected once again by a prior acting area of support, now an upside barrier.
  • Monero (XMR) is now being accepted as a form of payment for Fortnite Merchandise, covered by the CCN team.

XMR Price Behavior

XMR/USD 4-hour chart. Bulls have life sucked out of them again in stubborn zone.

XMR/USD is continuing to struggle getting past a very stubborn area of resistance. The price in the two previous sessions was making good headway in its move to the north. Since losing momentum on 24th December, the bulls have failed to regather control. Price action has been narrowing and showing little signs of commitment from either bull or bear camps.

During the November-December market fall, there was a period of consolidation between 25 November until 4th December. Given the chunky falls seen prior to this, market participants were desperately calling for a bottom. Support started to swoop in to defend these consolidation levels, temporarily preventing a further fall to the south.

The bears at the time were taking no mercy and resuming vicious selling pressure to print a low on 15th December, $38.45. Following this, big upside momentum kicked back into the bulls, having a decent run from 16th to 24th December. The high of 24th is where the bulls lost steam; it is also the same consolidation area described above, now acting as an upside barrier.

Monero Accepted by Fortnite

There has been some interesting news picked up by our CCN team: Retail Row, the merchandise store for the popular online video game Fortnite, is now accepting Monero as a cryptocurrency payment option. This was covered via the official Monero twitter account: “The official Fortnite Merch Store is now exclusively accepting Monero as a cryptocurrency payment option!”

GloBee crypto payments service is now supported by Retail Row, which facilitates retailers in accepting cryptocurrencies. The support already includes the likes of Bitcoin (BTC), Litecoin (LTC) and Ripple (XRP). XMR however is the only digital currency exclusively supported by the store, this outside of the conventional PayPal and credit card payments.

Technical Review – XMR/USD

XMR/USD daily chart. Price moving within a horizontal wedge pattern. $53-$62 zone is critical and must be broken down for greater upside.

Keeping in mind the earlier described rejection, XMR/USD is on the back foot again, at the time of writing today. Price action is moving within a horizontal wedge pattern formation, with lower trend line support tracking around $46. Any breach to the downside from this pattern could open the door to a retest of the December low, $38.45.

Upside Targets

XMR/USD weekly chart. The zones marked are big upside barriers moving forwards for the bulls.

The major near-term challenge as described is for the November-December consolidation area to be broken down. This can be seen running from $53 up to around $62 territory. Enough upside momentum from the bulls forcing a breakout should see the price run up towards $80-$90 region, which is a very significant zone that will sure to be another tough barrier. It provided support between September – November 2017, also cushioning XMR/USD on several occasions from July – November 2018.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Author:
Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.