Monero Perks Up
- Crossing 50-day EMA
- Breaking above $60
- Recently bounced from high-volume
Monero, just like the other crypto markets, has been hammered over the last several months. But this crypto is starting to turn things around, reaching towards the 50-day EMA.
Over time, it has been proven that crypto cannot hang on to gains for any significant amount of time until Bitcoin does the same. It is a massive amount of volume when it comes to this asset class, so at this point, no matter what you are trading, you should have Bitcoin available to monitor.
Technical analysis
XMR/USD chart
The technical analysis for this currency is very bullish, as Monero has crossed the 50-day EMA during the trading session on Wednesday. Not only that, but the volume has been relatively strong lately.
The shooting star from a handful of sessions ago also shows significant resistance that is now being tested. Now that we are seeing this market break this area again, it’s very likely that there will be a significant move to the upside. At that point, technical analysis suggests the market would head to the next large, round, psychologically significant figure of $70.
To the downside, the $60 level should offer a bit of support now that the market has broken above there. It should also be noted that there is a significant amount of volume in that range of price. Ultimately, the market also has formed a bit of a “rounded bottom”.
Overall, the market could not only go to the $70 level, but perhaps to the 200-day EMA that’s currently trading at the $73.23 level. In other words, Monero has a bit of range to continue driving higher.
The trade going forward
The trade going forward is relatively simple when it comes to Monero. There are two things you should keep in mind almost immediately.
The first is to pay attention to what Bitcoin is doing. If it is rallying, and Monero is doing the same, it builds quite a lot of confidence in the upside. At that point, buying every time it dips makes quite a bit of sense. This looks as if it is a trend reversal, just as we are seeing in several other currencies in the crypto markets.
The alternate scenario would be a turnaround and a break below the $50 level. If that happens, and a daily candlestick closes below there, then it is a sign of selling pressure just waiting to happen again. At that point, the market could very well find itself reaching towards the $40 level. That said, based on recent action, it seems to be a lot less likely than the bullish case.
Overall, it looks as if “a rising tide is lifting all boats” in the case of Bitcoin, as it is lifting not only Monero, but several other coins too.