Monero Price Key Highlights
- Monero price recently busted through a descending trend line on the daily time frame to signal a major reversal.
- However, price hit a roadblock near $150 and is pulling back to the broken resistance.
- The Fib retracement tool applied on the latest breakout move also shows nearby support levels where bulls might return.
Monero price is pulling back after its strong upside trend line breakout, waiting for more bulls to join in.
Technical Indicators Signals
The 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, the downtrend might still be more likely to resume than to reverse. In addition, the 100 SMA recently held as dynamic resistance on the latest rally and may continue to keep gains in check.
Applying the Fib retracement tool on the latest swing low and high shows that the 61.8% level appears to be holding as support, coinciding with a short-term area of interest just above $100. If this holds as support, Monero price could resume the climb to the swing high and even complete a complex inverted head and shoulders pattern.
This would place the neckline around $150, and a break beyond this could spur an uptrend that’s at least the same height as the reversal formation. RSI is still heading south, though, so there may still be some selling pressure left. This could take Monero price for a larger correction to the broken trend line closer to $80 and the swing low.
Stochastic is also moving south but is closing in oversold levels to signal bearish exhaustion. Turning higher could draw buyers to return and lead to a bounce.
XMRUSD Chart from TradingView
Monero price made an upside trend line break right around the release of strongly bullish forecasts from Satis Group. Traders rushed to establish long positions at relatively cheap prices before the anticipated surge in value takes place.
Posted from my blog with SteemPress : https://www.nairalandcrypto.com/monero-xmr-price-watch-correction-after-major-bullish-breakout/