- Monero (XMR) is at present stuck within a consolidation mode of trading, ahead of the next committed potential move north.
- XMR/USD price action has formed a bullish pennant pattern formation, which is subject to an extended breakout to the upside.
Monero price action is moving within consolidation mode, with the bulls eyeing a potential chunky extended breakout to the upside. XMR/USD has been on the gradual path to recovery for 2019; it has been somewhat slow, but this could be set to pick up the pace. The price is up over 60% from the bottom area of 2018 and early 2019.
Steady Recovery Path
XMR had been dropping throughout 2018; however, there was a nail in the coffin seen in November, a fall of 65%. The price was initially trading at heights of $115 before big sellers came into force. The cryptocurrency had then entered an incredibly mundane range for a prolonged period between December 2018 up until late March 2019.
The bulls have now escaped that range, which has helped bring back some appetite among buyers to get involved. XMR/USD has managed to push back to its highest levels since November 2018, with much room for a further move north. There appears to be just one significant barrier in the way of a return to pre-November 2018 fall levels.
To the upside, the next big barrier for bulls to tackle will be the $73-$80 price range, an area that provided price support in 2018. Should this be broken down, then XMR/USD could see a quick move firmly back above the psychological $100 price mark. A push above here could be very much what is needed for the ultimately committed bull trend.
Bullish Pennant Pattern
Given the consolidation form of trading observed for XMR/USD, the price has produced a bullish pennant pattern. The price has been moving within the confinements of this structure since the start of April. It comes after the decent push north late in March. In terms of the critical levels of the pennant, the upper trend line is tracking around $70-$71, and support is immediately seen at $66.
If the bulls can capitalize on this detailed technical structure, then this could without be the additional spark needed to carry Monero north. There shouldn’t be too much difficulty breaking down the initial trend defining barrier, $73-$80. Buying opportunities are appealing to the noted price behavior and formation.
Long positions are attractive from the current price level, on the apprehension of a breakout from the pennant pattern. The initial upside target will be $80, and XMR/USD last traded here on 18th November 2018 during the bear market. Furthermore, should the bulls push through this supply area, eyes will be on the second target of $100, which is around pre-November 2018 fall territory. The stop will be placed just below the pennant structure at $62.50.
In terms of points of entry, one could be taken within the confinements of the noted bullish pattern in the $65-$70 range. A breakout and retest of the pennant is a possibility for the same above-noted target areas of interest. Lastly, if the bears suddenly take control and force a breakout and daily closure below the technical formation, then longs will likely be off the cards.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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