By CCN Markets: Monero has been trapped in vary accumulation for over a yr now. Since August 2018, the cryptocurrency has been vary buying and selling in a wide selection between $40 and $120 with a midpoint at $80. The size of time spent on this vary tells us that the privateness coin has entered a interval of accumulation.
On June 23, 2019, Monero tried to take out resistance of $120. However, the market was already in overbought territory on the every day RSI. This enabled the bears to swiftly reject the advance.
The excellent news is that Monero managed to remain above the vary midpoint of $80. This is bullish as it signifies that patrons are now not ready for the crypto token to plunge to our vary help. Most importantly, it permits the bulls to ascertain a attainable increased low setup.
Inverse Head-and-Shoulders Pattern in Play
With a bullish increased low across the vary midpoint of $80, Monero is in a nice place to color an inverse head-and-shoulders sample. The construction is so massive that it is usually seen on the weekly timeframe. The key degree to interrupt is our vary excessive of $120.
Trader Nik Patel helps our bullish stance. Monero’s capacity to remain above $80 has prompted the analyst to forecast a transfer above $100. In a tweet, Nik Patel wrote:
— Nik Patel (@cointradernik) August 18, 2019
However, opening a contemporary lengthy at present ranges will not be a smart resolution, particularly in the event you’re not an skilled dealer. The market isn’t out of the woods but. Ideally, we wish to see Monero set up a new base at $100 and convincingly take out resistance of $120.
We spoke to Swissborg Chief Risk Officer, Marco Guerreiro, concerning the prospects of Monero. The CRO of the crypto wealth administration agency helps our view that it’s best for long-term buyers to remain affected person for now.
“I would avoid it for the time being as the trend is under threat. [Monero is] mildly bullish if above $100 and bullish if we close above $120 as that level represents a strong resistance.”
For now, Monero is worthy to be a part of your watch listing. Fireworks are more likely to start as soon as the cryptocurrency goes above $120.
Disclaimer: This article is meant for informational functions solely and shouldn’t be taken as funding recommendation.