Trade Recommendation: Monero

Monero

Our April 7, 2019 trade recommendation for Monero (XMR/USD) hit its target. On May 11, the market rallied to $81.238. Those who followed the trade plan grew their capital by over 35% in about a month.

While Monero overshot our target price, that’s okay because the market is already bullish. That means Monero is a buy on dips candidate. Fortunately for us, it is currently correcting. We have a chance to enter at a discount.

Technical analysis shows that XMR/USD has broken out of a large cup and handle pattern on the daily chart. This pattern suggests a bullish continuation. In other words, the market is very likely to continue its uptrend once sellers are done dumping positions.

Technical indicators support this view. The 100-day moving average (MA) is crossing above the 200-day MA. This golden cross is a solid bullish signal. If this continues as expected, we’ll have the ideal alignment where the 50-day MA is above the 100 day MA and the 100-day MA is above the 200-day MA. This setup indicates that the market’s uptrend is quite healthy.

The strategy is to buy on dips as close to $72 as possible. As long as Monero trades above this level, bulls will likely gather the momentum to hit our targets of $97 and $120.

The process may take less than a month.

Daily Chart of Monero/US Dollar on Bitfinex

Monero Chart

As of this writing, the Monero/US Dollar pair is trading at $85.63 on Bitfinex.

Summary of Strategy

Buy: As close to $72 as possible.
Targets: $97 and $120.
Stop: $68.50

 

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.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.