Technical Analysis and Market Entry: Monero’s Critical Trend Line Being Tested
- Monero (XMR) continues to press lower, in line with the broader market dip.
- A strong ascending trend line of support remains intact, providing much-needed safety.
XMR/USD: Recent Price Behavior
The Monero price remains under downside pressure, which has been the case since the latter stages of June. XMR/USD had been running with much upside momentum, gaining as much as 160% from April to June. The noted period is when the bulls picked up the pace to the north as part of a 2019 recovery.
XMR/USD has managed to prop up massively following the beating encountered through the year of 2018. The price at the beginning of the year was trading at depressed levels of $43; as part of a solid mission, XMR recently reached $131. That was the highest price since September 2018 before running into a barrier.
Weekly Chart View
XMR/USD price action over the last three weeks has failed to find a committed direction. The price is capped by a large supply area, which gave XMR bulls some issues between August to November 2018. It is struggling to maintain the psychological $100 mark, with the price consolidating just below this level.
Daily Chart View
Price action via the daily chart view continues to track very closely to a long-running ascending trend line. It has been in play since March, having provided much-required support on several occasions. An additional confluence of support is seen in proximity, just below tracking at $87 to $78.
Should the above-detailed areas of support fail to prevent the bears from breaking through, then a massive wave of selling pressure could be seen. The next major area of safety is seen down at depressed levels at a range of $65-$60. XMR/USD last traded down here in May, where a decent amount of buying interest picked up pace.
Given the dip in price and the comfort of reliable support just below, it does increase the attractiveness for a buy position. Should the ascending trend line continue to withstand the pressure from the bears, then eyes will be on further upside. Targets to the north will be $100, $120 and $130. Stops would be placed at $74, below the trend line and demand zone.
On the flip side, a breach and daily closure below the above-detailed support cannot be ruled out. Should this be seen, then near-term shorts will be on the cards targeting $60. Stops with an entry at $80 below the trend line would be placed at $90.
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.