Monero (XMR) Surges Higher After a Breakout at the Support

Monero (XMR) Surges Higher After a Breakout at the Support

Key Resistance Zones: $60, $70, $80
Key Support Zones: $40, $30, $20

XMR/USD Long-term Trend: Bullish
On January 3, Monero was in an upward move. The bulls broke the downtrend line and reached a high of $60. The coin failed to penetrate the resistance at $60. Consequently, XMR was compelled to a sideways move below the resistance. Today, the bulls have been resisted as the coin makes a downward move to the low of $54. On the downside, if the support at $54 cracks, the selling pressure will resume to the low of $50. Meanwhile, if the $54 support holds, Monero will rise to retest the $60 resistance.

XMR/USD - Daily Chart

Daily Chart Indicators Reading:
Monero fell because the price reached the overbought region of the market. The price is currently below 80% range of the daily stochastic indicating that price is in a bearish momentum. The moving average is at the point of a bullish crossover. The implication of price breaking the downtrend line to the upside is that the bearish trend has been terminated.

XMR/USD Medium-term bias: Bullish
On the 4 hour chart, the coin had been in a sideways move since December 17. The price fluctuated within the price range until January 3 when the price broke out. The coin reached a high of $64 and was resisted. The downward move has continued as the price is expected to reach a low of $54.

XMR/USD - 4 Hour Chart

4-hour Chart Indicators Reading
The Relative Strength Index period 14 level 43 indicates that the coin is in a range bound zone. The price bars are below the 21-day SMA and 50-day SMA indicating that price is falling. As the market falls, buyers are likely to emerge at the $54 price level.

General Outlook for Monero (XMR)
Monero is presumed to be in a bullish trend as the downtrend is believed to be terminated. The bulls broke the downtrend line and the price closed above it. This confirms the termination. The upward move can be ensured if the bulls sustained the price above the EMAs.

XMR Trade Signal
Instrument: XMR/USD
Order: Buy Limit
Entry price: $54
Stop: $50
Target: $70

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.