Trade Recommendation: 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
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.
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.