Monero’s Ascending Channel Could Launch XMR Bull Run

Monero Highlights

• XMR is possibly trading inside an ascending channel.
• There is support at ₿0.008.
• A golden cross has transpired.
• There is resistance at ₿0.0115.

Technical analyst @lomahcrypto tweeted an XMR price chart stating that he will add to his position if the price manages to reach a daily close above ₿0.00845.

$XMR

I'll add more Drug Dealer Coin if we manage to close the D3 candle above ~8450. pic.twitter.com/HFJAJm5gU8

— Loma (@LomahCrypto) February 10, 2020

XMR Breakout

On Feb 3, the XMR price broke out from the ₿0.008 area and validated it as support during the week that followed. On Feb 9, it created a bullish engulfing candlestick that closed above the previous high, indicating that the price wants to move upwards. In addition, the 50 and 200-day moving averages (MA) have made a bullish cross, a strong sign that the XMR price has begun an upward trend. The price is trading above both MAs. The ₿0.00845 price level that is mentioned in the tweet will slightly differ from exchange to exchange. The target that seems more appropriate is ₿0.0085 — the daily close on Aug 19, 2019. A daily close above this would likely mean that the price has cleared the current resistance and will move further upwards. The price has already reached a close above and has possibly validated it as support in the next daily candlestick.

Future Movement

The most likely target is found by the weekly chart, at ₿0.0115. This area acted as support in 2017 before the price broke down in April 2018. XMR has yet to revisit this area since. Since breaking out from the descending resistance line the price has been moving upwards, creating several bullish engulfing candlesticks. In addition, we can see that there is virtually no resistance from the current price level all the way to ₿0.0115, increasing the chance that the price will reach it.

Ascending Channel

Going back to the daily chart, we can see that the price is possibly trading inside an ascending channel. Furthermore, since the channel began, the RSI has been above 50, suggesting that the price is in a bullish trend. Therefore, the price is expected to continue increasing gradually at the rate predicted by this channel until it reaches resistance. To conclude, the XMR price has broken out above a significant resistance area. It will likely increase at a gradual rate as predicted by the current ascending channel that the price has been trading in.