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On September 4, 2019, the XMR price reached a low of ₿0.0069. It has been gradually increasing since. The rate of increase intensified on September 18 and XMR reached a high of ₿0.0080.
At the time of writing, theprice was trading close to ₿0.0075.
How long will the upward move continue for XMR? Continue reading below if you want to find out.
For our previous analysis, click here.
A closer look at Monero price movement shows that XMR had been trading inside an ascending triangle since August 28.
On September 18, it broke out above this triangle.
Afterward, it decreased in order to validate the previous resistance line.
It is customary for the succeeding movement to be a continuation of the prior upward trend.
Let’s take a look at a different time-frame and see if that is likely.
Looking at the weekly time-frame we can see that the Monero price has been trading inside a descending channel since August 13.
The upward move detailed in the previous section occurred once the Monero price reached the support line of the channel
Furthermore, we can see that both the RSI & MACD have generated significant bullish divergence.
The divergence is more pronounced in the MACD.
Divergence in a weekly time-frame is uncommon, and it has more significance since it is present in both indicators.
This makes us believe that the triangle breakout was legitimate, and the XMR price is likely to continue its upward movement.
The resistance line of the channel is currently at ₿0.011.
Going back to a shorter-term time-frame, we can two additional resistance areas — found at ₿0.0085 and ₿0.0092.
While we believe that the Monero price will eventually reach the resistance line of the channel, it is likely to face resistance at these areas first.
The XMR price is trading inside a descending channel.
According to our analysis, it is likely to move towards the resistance line of the channel — facing two minor resistance areas before it reaches it.
For hypothetical trading purposes, we consider XMR a buy at the current price level of ₿0.0075.
Do you think XMR will reach any of the resistance areas? Let us know in the comments below.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images are courtesy of TradingView and Shutterstock.
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