Technical Analysis and Market Entry: Monero Must Breakdown Bearish Double Top Area For Big Gains
- Monero is running towards its fifth straight session in the green, having gained some 17%.
- XMR/USD must break down critical near-term supply at $70-73 range for greater upside.
XMR/USD: Recent Price Behaviour
Monero is on a solid run to the north, running towards its fifth potential straight session in the green. It is the most consecutive run seen since early November 2019, however, this time things are looking much more promising for the bulls. The price has gained a whopping 17% within the noted period, rallying from $61 up to $71.
Elsewhere, the price is challenging supply which can be observed from $70-73 price range; it has not comfortably traded above this area since September 2019. At the time XMR/USD was moving within a bearish trend, which led to the bottom late in 2019 at $40. Moreover, if the bulls can break down the noted area of supply, there should be another strong wave of upside momentum that follows.
Weekly Chart View
XMR/USD has been rallying to the upside for more or less five consecutive weeks, having gained some 65%. The bulls smashed out of a descending channel structure, which invited another strong wave of pressure. Recovery had been laid out following the brutal selling in 2019. The price jumped from depressed levels of $38, up to the recent high print at $73.
Furthermore, last week, the bulls managed to push the price up to the highest levels seen since September 2019. The high print was seen at $73, before cooling back down to a strong known area of demand $65-60 range. A wick was left to the upside, which the bulls are hunting to fill.
Daily Chart View
Price action via the daily chart view is trading around a critical area of supply, $70-73, which is the high territory seen between 15-19 January. It can be viewed as a potential double top or textbook m structure. The bulls will need to force a daily breakout and closure above, to void this bearish setup.
A buy position would be opportunistic if the bulls can breakdown the above-detailed bearish structure. An entry would be attractive upon a daily candle breakout and closure above $73. Targets to the upside eyed at; $80, $85 and then $95. Stops would be placed at $65.
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.
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