Technical Analysis and Market Entry: XMR/USD Could Half In Price Within The Near-Term
- Monero has recently been able to stage a near-term rebound, some respite from the tense downside pressure.
- XMR/USD price action via the daily chart view is moving within a bearish flag structure.
XMR/USD: Recent Price Behaviour
The Monero (XMR) price has recently taken a bounce, after being firmly within the control of the market bears. It had been falling for four consecutive weeks, following a deadly bearish evening star formation at the close 10 February week. The price dropped from heights of $96.00, which at the time was the highest seen since August 2019. XMR/USD was recently forced down to depressed levels of $25; a price last traded at in July 2017.
During the current bear market, Monero has given up all of the 2020 gains, following such an impressive start to the year. XMR/USD had initially commenced down at $43, after finding a substantial area of demand late in 2019. The bulls were able to drive the price up to heights of $96, a decent gain of 120%. It smashed out to the upside from a descending channel structure, which had been containing the price.
Weekly Chart View
Price action, with its ascent from the beginning of the year, was forming a bearish flag structure. Despite the strong moves that were being made to the north, vulnerabilities were stacking up against XMR. The detailed pattern proved to play out to the textbook. A breakout was observed during the week of 24 February, which invited a fresh wave of selling pressure. The price has recently caught support just on top of the prior breached descending channel.
Daily Chart View
XMR/USD has been moving within consolidation mode, since bouncing down at $25. During this noted technical price behaviour, a bearish flag formation has been observed. It has contained the price since 13 March, with trading conditions narrowing. Resistance to the upside is tracking around $45, with support noted down at $37. Should the bears capitalize on this structure, it will very likely invite a fresh of downside pressure.
Given the noted bearish technical structure, further moves to the south remain attractive. An entry around the current market price, while XMR/USD moves within the confinements of a bearish flag. Targets to the south eyed at; $25, $20 and then $15. Stops to be placed above the pattern at; $48.50.
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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