Technical Analysis and Market Entry: Monero Bulls Ready To Rocket Beyond $100

  • Monero (XMR) is enjoying a strong run to the north, gaining 120% within the last seven weeks.
  • North Korea is reportedly largely increasing their Monero mining operations.

XMR/USD: Recent Price Behaviour 

The Monero price has been taking decent strides to the upside since the commence of 2020. XMR/USD has been running aggressively to the north for seven consecutive weeks, gaining as much as 120% within the noted period. The move is somewhat reminiscent of the early 2019 bull run, before losing much momentum and reversing. 

Buying pressure had increased largely following a critical technical structure breakout. Between June to December 2019, XMR/USD was trading within the confinements of a descending wedge structure. The bulls managed to force a breach of this pattern late in December – early January. Given the escape of this, it allowed for another wave of upside, encouraging for further buyers coming in. 

XMR/USD weekly chart.

North Korea Stepping Up Monero Mining 

A report conducted by U.S. cybersecurity firm Recorded Future recently detailed that network traffic for Monero (XMR) mining coming IP ranges based in North Korean had increased. They noted by “at least tenfold” since May 2019, which makes it the most popular digital asset to mine and surpassing the regime’s mining activity for Bitcoin (BTC).

Preference for Monero because XMR mining can take place on non-specialized machines. They are leveraging the use of conventional computers, which sees lower operating costs and negates the need to import mining rigs from abroad according to the report. Additionally noted that given Monero transactions are anonymous, this makes things easier for North Korea. They can “evade attempts to track funds” as well as circumvent sanctions imposed on the regime by the U.S. and the U.N. Security Council, as per the report. 

The report details: 

We assess that cryptocurrencies are a valuable tool for North Korea as an independent, loosely regulated source of revenue generation, but also as a means for moving and using illicitly obtained funds.

Trade Recommendation

XMR/USD weekly chart.

As per the last Monero article, all upside targets were successfully achieved. Further moves to the upside are still being observed, new entries being eyed at $88, critical daily support. Should this fail to hold the price, then $85-84 for buy positions. Targets to the upside; $99, $102 and then $108 in the near-term. Stops for the first noted entry to be placed at $83 and then second at $78. 

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.