Trade Recommendation: Monero
Our May 20, 2019 trade recommendation for Monero (XMR/USD) hit its initial target price. On June 16th, the market climbed as high as $98.078. Those who followed the trade recommendation grew their investments by over 20% in less than a month.
Now, the second target of $120 for Monero still applies. However, we are publishing a new trade recommendation because the cryptocurrency made a significant bullish move in the longer timeframe.
Technical analysis shows that XMR/USD has broken out of a rounding bottom pattern on the weekly chart when it took out resistance of $85 on June 10th. The breakout marked the end of the cryptocurrency’s 18-month long bear winter from the macro perspective. With the trend reversal, Monero is currently enjoying a strong breakout rally.
As the market is in full bull mode, it is now a strong buy on dips candidate. IT would be wise to wait for a correction before opening fresh long positions because Monero is flashing overheated signals on the daily chart. The daily RSI is in overbought territory plus we can spot a large bearish divergence forming. A pullback appears to be on the horizon to keep the market’s uptrend sustainable.
The strategy is to buy on dips as close to $85 as possible. As long as Monero trades above this level, bulls will likely gather the momentum to hit our target of $150.
The process may take a month.
Daily Chart of Monero/US Dollar on Bitfinex
Summary of Strategy
Buy: On dips as close to $85 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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