Trade Recommendation: Monero
Our February 16, 2019 trade recommendation for Monero (XMR/USD) hit its target. On April 1, Monero climbed as high as $60.87. Those who followed the trade recommendation grew their investments by close to to 30% in a month and a half.
Fortunately for fans of Monero, the range high of $58 was taken out on the same day that our target was hit. If you feel like you sold early or if you plan to finally enter the market, the next several days will likely give you the best entry. The trick is to be patient and wait for the pullback.
Technical analysis shows that XMR/USD has broken out of an ascending triangle pattern when it took out resistance of $58 on April 1. This pushed the market to as high as $73.002 on April 3.
At that point, Monero was showing signs of short-term exhaustion. A long wick could be seen on top of the daily candle’s body. Also, the daily RSI was in overbought territory. As a result, the market succumbed to the 200-day moving average, which was acting as resistance. This is an indication that the market must consolidate before it can resume its uptrend.
The strategy is to buy on dips as close to $57 as possible. As long as Monero trades above this level, bulls will likely gather the momentum to hit our target of $76.
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 $69.009 on Bitfinex.
Summary of Strategy
Buy: As close to $57 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.