Trade Recommendation: Monero
Our August 14, 2018 trade recommendation for the Monero/US Dollar (XMR/USD) hit its target on September 3 when it climbed as high as $137.49. Those who followed the trade recommendation and bottom picked the market grew their investments by over 70% in less than a month.
Looking at the market, it appears that the rise has just begun. Bulls have taken control of XMR/USD and it seems that there’s more upside potential.
Technical analysis shows that XMR/USD has broken out of the large falling wedge on the daily chart. This view came after the pair breached resistance of $125.00. The breakout looks convincing as it was pushed by heavy volume. When the pair took out $125 on September 3, it printed volume that’s over 170% of its daily average.
The strategy is to buy on dips as close to $117 as possible. The market is in overbought territory so we can expect profit taking in the coming days. This could be your chance to either add more positions if you bought the bottom or buy the breakout.
As long as XMR/USD stays above the breakout, it has the momentum it needs to climb to our target of $230.
The process may take more than a month.
Daily Chart of Monero/US Dollar on Bitfinex
As of this writing, the Monero/US Dollar pair is trading at $123.89 on Bitfinex.
Summary of Strategy
Buy: Buy as close to $117 as possible.
Disclaimer: The writer 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.