Technical Analysis and Market Entry: Monero (XMR) Bullish Breakout is Nearing
- Monero (XMR) has been consolidating over the last two weeks, subject to further potential recovery.
- Hash rates for Monero (XMR) recently reported an aggressive spike of some 186%, within recent days.
XMR/USD: Recent Price Behaviour
Monero (XMR) is moving within consolidation mode, following a decent bounce late in November. XMR/USD was initially under much selling pressure, through the early part of last month, dropping some 33%. However, the price managed to stabilize, gaining firmer ground at the lowest levels seen since February, around $44.
XMR/USD has been stuck within a stubborn downward trend since June, after what was an initially promising start to 2019. The price started the year down at $42, going on to rally to heights of $132. The latter was the highest level that had been hit since September 2018, marking the significance of that run.
Significant Increase in Monero Hash Rate
It has been noted across the Monero community, that a massive spike has been observed in the hash rate. The increase was reported to have been a chunky 186% within the recent days. In terms of the jump, it comes following the team releasing a new update with the latest mining algorithm RandomX. The new rules are able to force the elimination of the benefits of ASIC-based mining and increase network decentralization.
Before the upgrade, the hash rate of Monero hash rate has been registered at 309 MHash/s, while seven days later it has settled at 952 MHash/s. Some experts believe that the spike is caused by ASIC-resistant features that give all miners an equal opportunity to participate in the mining.
Bull Flag Subject To Breakout
The recent price consolidation observed since 26 November, has seen the construction of a bullish flag pattern. The pole of the structure was the bounce on 24 – 27 November, within a sizeable known buying area. Previously it attracted decent bull momentum from these levels, setting XMR/USD on its way to the earlier described heights.
Given the detailed price formation, buy opportunities are attractive, as the flag remains subject to a potential breakout higher. An entry would be ideal around the current market price. In terms of upside targets; $58, $65 and then $70. Stops to be placed just below the flag at $47. Upon a successful breakout and retest, it would mark further confirmation for longs.
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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