Technical Analysis and Market Entry: Monero (XMR/USD) – Bulls Have Stabilized and are Ready for Take-Off

  • Monero (XMR) has been on the gradual ascend, maintaining a decent path to recovery.
  • XMR/USD buy opportunities are looking attractive, given the proven secure active support areas.

XMR/USD: Recent Price Behavior

Monero price action is maintaining a decent steady course to a healthy recovery after the beating encountered through 2018. XMR/USD bulls stepped up the pace north from the back end of March, being supported to the upside by an ascending trend line. The price has gained over 95%, from $50 up to a high of $102, which was the highest since 14th November 2018.

Presently, XMR/USD can be seen moving within a $20 range between the low of $80 to a high up at the $100 mark. The price is caught up in the middle of a significant area of demand and a substantial supply zone. Given the stability and maintenance of current heights, the bulls do have the leverage to drive the price to greater heights.

XMR/USD daily chart.

Efforts Increase to Block ASIC Hardware

Monero’s privacy-focused developers are stepping up their efforts to have measures in place that prevent specialized mining hardware from dominating the space in claiming rewards. It is worth noting, according to data conducted by Messari, that the annual mining rewards generated via the five-year old blockchain, equated to some $62 million.

To Monero’s concern, however, it is becoming increasingly apparent that the rewards are falling into the hands of ASIC operators. As a result, it pushes out  other participants who are much smaller and perhaps more leisurely hobbyists. The developers at Monero have already conducted regular hard fork upgrades to try and fend off ASICS.

Unfortunately, data indicate that this approach has proven to be ineffective at present, as ASICS continue to push with their success. The developers at Monero as previously announced are moving forward with activation of a new mining algorithm known as RandomX, designed to render ASICs non-competitive.

Monero contributor Justin Ehrenhofer recently said:

“We’ve ultimately come to consensus in general that RandomX is what will be implemented. It’s our best shot to preserve Monero as it was founded. If this fails then Monero will probably move to an ASIC-friendly algorithm.”

Trade Recommendation

Given the bulls’ persistence to further their recovery, buys from the current price area are attractive. Once XMR/USD is able to break and close above the psychological $100 mark, this would be additional confirmation.

Furthermore, in terms of upside targets, $120 is the next area. The price last traded here back in October 2018. This is followed by $140, the heights from September 2018. Stops may be considered just below the supporting ascending trend line, in proximity to the 38.2% Fibonacci ($76). The target of $120 provides a RR of 2 and $140 a RR of 3.6.

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.            

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.