Trade Recommendation: Monero
We started watching Monero (XMR/USD) ever since it dropped to support of $38.50 on December 15, 2018. At that point, we were interested to see whether the support would hold. After all, this was the area of accumulation back in May 2017. Back then, the market range traded between $38.50 and $58.50 for three months before launching a disbelief rally in August 2017. Thus, it only makes sense for this privacy-focused coin to find support at these levels.
Fortunately, the market printed a 2018 low at exactly $38.50 on December 15, 2018. This attracted bottom pickers and bargain hunters who helped push Monero to as high as $60.05 on December 24, 2018. While the market has been pulling back since, this gives us a chance to buy cheap before Monero leaves its accumulation range.
Technical analysis shows that XMR/USD is starting to look bullish. This view comes after the market refused to revisit support of $38.50. Instead of dropping all the way down to our range low of $38.50, Monero worked really hard to claim our range midpoint of $46.17. It was able to do so on February 8, 2019. With the range midpoint now acting as support, Monero is very likely to touch our range high of $58.50 and possibly break out of it.
The price action on the shorter time frame appears to support this view. A quick look at the 12-hour chart shows that Monero is printing a bull flag. This pattern suggests continuation of the previous bullish move once consolidation is over.
The strategy is to buy on dips as close to $46.17 as possible. As long as Monero trades above this level, bulls will likely gather the momentum to hit our target of $58.50.
The process may take less than a month.
Daily Chart of Monero/US Dollar on Bitfinex
As of this writing, the Monero/US Dollar pair is trading at $48.65 on Bitfinex.
Summary of Strategy
Buy: As close to $47.10 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.
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