XMR appears to be positioning well against BTC for a breakout, with the market starting to move in favour of the latest fork in the Monero blockchain.
In the 4hr chart above, we can see that XMR is attempting to exit the channel between strong support at 23,800 Sats and a well-tested ceiling at 26,000 Sats (0.286 fib level).
Having already failed the breach this resistance 4 times, many XMR hodl’ers will be hoping that the recent news will elevate bullish support for the alt-coin.
A good entry point for short-term investors lies between 24,400 Sats and the base support. This area has already been passed in the current trend, which is sitting well along the diagonal support (yellow dotted line) for now, but we could see bearish opposition inhibit this early bull run at the softer resisting 25,000 Sat level to create a late buy opportunity.
Looking deeper into the current bull run we can see that bullish momentum is beginning to force the MACD indicator above the signal line, with an early bullish convergence between the two moving averages already confirmed.
RSI is also bullishly crossing above the center line, indicating that the green candles are averaging higher than the bearish red candles.
These are both promising confirmations that bullish momentum is gathering well behind this asset at the present time. Volume however, is looking a little thin and we’re also still waiting on stronger bullish confirmations from the 50/200 EMAs, expanding Bollinger Bands or a positive Senkou cloud projected ahead of the price movement.
This isn’t to say the bull run will fail, it could be simply down to catching the uptrend early before larger support moves in.
Monero (XMR) Price Prediction
At the time of writing, XMR is up 1.93% compared to BTC which has recently fallen over -3% against USD in the past 24hrs. The recent decline of BTC against the market could be a reflection of investors withdrawing into other lower-tier cryptocurrencies in search of short-term gains. This could work well in Monero’s favour as the recent news will draw in outside support who’ll want to profit off the back of these early bullish signals.
We’d like to see our first price target around the 0.5 fib level at around 28,850 Sats which would give us a 16.59% gain from the base support level price.
This initial bull run is likely to incur some selling pressure before continuing, as short-term investors take profits, so we’ll probably see some price action oscillation between 0.5 and 0.382 fib levels before the run advances.
A conservative price target for the top of this run will be at the 0.618 fib level, around 30,000 Sats. This would give us a total 26.86% gain from the base support price.
If this early bull run fails then we’d hope to see XMR continue to track along the ascending support and consolidate where the uptrend meets the channel ceiling, before breaking out towards the end of the month.