Monero’s Bullish Pattern Could Take It Above ₿0.01

Monero Price Highlights

• The XMR price has created a double bottom near ₿0.006.
• The weekly RSI has generated bullish divergence.
• There is resistance at ₿0.0075.
• There is some support between ₿.0068-₿0.007 at the 100-day moving average.
• The price is trading inside an ascending channel.

Trader @LSDinmycoffee outlined the XMR price and stated that he has begun to re-enter the trade since the price has reached his diagonal support line. In addition, the retest of the 200-day moving average (MA) has caused him to believe that the selling pressure has been exhausted.

$XMR

Started to slowly scale in again. As said before, we could rebuy later on diag support. Well, we just hit that diag support.

Clean retest of daily ma200. Volume decreasing on this retracement, selling pressure exhausted?

S/L on USDT pair in case $BTC nukes, as usual. pic.twitter.com/9GOgUAkoJ5

— Crypto Krillin ॐ (@LSDinmycoffee) January 23, 2020

Where will the XMR price go to next? Continue reading below if you are interested in finding out.

Double Bottom

Throughout October-December 2018, the XMR price created a double bottom near ₿0.006. The bullish reversal pattern was combined with a bullish divergence in the weekly RSI, which later completed a failure swing bottom — a strong reversal sign. In addition, the price moved above a long-term descending resistance line. If it continues its upward movement, it could reach the closest resistance area at ₿0.0105, which served as the previous breakdown level.

Inverse Head And Shoulders

After the breakout, the XMR price has failed to move above the ₿0.0075 resistance area and has decreased since. This price decrease is possibly a part of the formation of a right shoulder, which can be completed between ₿0.0068-₿0.007. While the price has decreased below the 200-day moving average (MA), it is still trading above the 100-day one, possibly finding support above it. The 100-day MA is trending upwards and looks as if it will make a bullish cross as long as the price stay above it. We successfully predicted the decrease in the formation of this right shoulder in our previous analysis, when the price was trading slightly above this resistance area. In the shorter-term, the Monero price is possibly trading inside an ascending channel, the shape of which is not entirely clear do to the presence of several wicks. If the price breaks down form this channel, there is strong support at ₿0.0068 — fitting perfectly with the hypothesis of an inverse H&S. This is also the 0.618 Fib level of the entire upward move, making it a very suitable place for a reversal. To conclude, the XMR price looks to be in the process of creating the right shoulder of an inverse head-and-shoulders pattern. We believe the current decrease will end at ₿0.0068 the lowest and the price will continue its upward movement.