Technical Analysis and Market Entry: XMR/USD Foundations Laid for Bull Run
- XMR/USD has received a boost from a big buying area, leaving the door open to further upside pressure.
- Monero (XMR) transactions cannot be traced when used with Tor web browser according to Europol.
XMR/USD: Recent Price Behaviour
XMR/USD has recently caught some upside pressure, back within the control of the market bulls. The price jumped to its highest level seen for some three weeks, breaking out from a descending channel formation. It is set to end a consecutive run of losses; price action has been trending to the south for three consecutive weeks. However, with the buyers currently back with some force, Monero is heading for closure in the green.
A decent jump north had triggered on 3 January, having rallied a chunky 15% in just a single day. The bullish momentum was attributed to a fundamental factor; Europol research had detailed that XMR could not be traced.
Monero (XMR) Cannot Be Traced
Monero (XMR) is a perfect tool for criminals and people engaged in illegal activities as it is practically untraceable when used together with web browser Tor, according to Europol Strategic Analyst Jerek Jakubcek.
Speaking at the recent Blockchain Alliance webinar, the expert cited the results of the previous investigations and highlighted the difficulties related to Monero transaction traceability.
Whatever happened on the Bitcoin blockchain was visible, and that’s why we were able to get reasonably far. But with Monero blockchain, that’s where our investigation ended. This is a classic example of one of several cases where suspects decided to move funds from Bitcoin or Ethereum to Monero.
Daily Chart View
As detailed earlier, XMR/USD had been contained within a descending channel formation; it was in play from 27 November up to 3 January. The breakout was attributed to the Europol representative comments, backing up the privacy features of Monero.
4-hour Chart View
Price action recently formed a bullish pennant structure, which was in play from 3 January, before being broken in the session today, 5 January. An additional wave of buying pressure as a result of the breach was observed.
Given the described bullish technical patterns, further moves to the north are still eyed. Entries to be eyed upon a retest of 4-hour support at around $51.55. Targets to the north; $55, and then $60. Stops to be placed just below the psychological $50 figure at $49.50.
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.
Featured image courtesy of Shutterstock.