By Nathan Ferguson
Monero saw a sharp decline below the $180 mark within the past couple of days before a quick rebound towards $200 when Bitcoin climbed from range lows. While publishing this blog, Monero trades inside a range below a bearish zone on its chart. Nevertheless, a breakout plus retest might present an opportunity to purchase XMR.
Monero – 4Hr Timeframe
XMR has printed multiple higher lows since May 12, as the ascending trend-line highlights. Furthermore, the alternative token broke beyond the $190 level and has tested the $200 psychological mark and a technical resistance several times over the previous week.
Analysts expected Monero to plunge towards $150 after dropping under $190 some days ago, especially with Bitcoin hovering inside the range and feebly rebounded from the support at $28.8K. Nevertheless, Bitcoin propelled towards the $32K level, giving XMR bulls needed strength to support upside action. For now, the value area at $200 poses a stiff resistance for the altcoin.
Monero – 1Hr Timeframe
The 1hr chart presented a range inside $193.2 – $201.3 within the past few days. That means a near-term consolidation below the resistance level, with an optimistic structure within the past fourteen days (on the hourly chart). Meanwhile, prices have produced a candlestick wick beyond $179.6 and $204.4 plus higher lows at $156, then $168.
Traders interested in long positions should wait until XMR flips the resistance at $200 – $205 into a demand region. Meanwhile, they can target a near-term range breakout and $201 – $204 retest to purchase the token. A decline under the $190 mark would annul this thesis.
The Relative Strength Index oscillated between 45 – 55 within the past few days, meaning momentum didn’t favor sellers or buyers. The on-balance volume declined within the past 72 hours, and bulls want an OBV surge beyond two areas. The Chaikin Money Flow remained beyond +0.05 within the previous three days, indicating impressive buying momentum on XMR.
Final Thought
XMR would likely see an upside move if prices breakout beyond the near-term range, OBV climbed beyond the two zones, and CMF maintains past +0.05. Investors can capitalize on this case to execute long positions upon a $201 – $204 retest. Meanwhile, a risk of less than 2% remains prudent. Investors can book profits at $225.
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