Trade Recommendation: Monero

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

Monero crypto chart
As of this writing, the Monero/US Dollar pair is trading at $109.32 on Bitfinex.

Summary of Strategy

Buy: On dips as close to $85 as possible.
Target: $150
Stop: $81

 

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.