While the Monero community gears up for a network update through RandomX scheduled to be executed by the end of this month, the privacy-centric coin XMR was trading at a low of $48.08 earlier today. However, the short-term chart for the 14th largest coin by market cap indicated strong bullish sentiment.
Monero’s 1-hour chart
Source – XMR/USD on Trading View
As seen in the above chart the price of XMR has been going downhill since 21 November, however, the coin seems to have found respite with the formation of a descending channel pattern. The upper trend line of the pattern was formed by lower highs at $51.511, $49.18 and $47.52 followed by a lower trend line with lower lows at $50.28, $48.06 and $47.65. As expected from the aforementioned pattern, the direction of the breakout was upwards.
Furthermore, the low volume of XMR also surged with an upward breakout. Strong resistance was formed at three points in the chart and the coin breached resistance formed at $50.20. The price of XMR seems to be getting closer to breaching the second resistance line formed at $52.12 and the current bullish sentiment of the coin might lead to the breach of the resistance formed at $54.91.
Key Indicators
Source – XMR/USD on Trading View
Additionally, key indicators also revealed the strong presence of bulls in the XMR market. The MACD line was seen above the signal line with a high volume further citing strong bullish momentum. In the RSI indicator, 58.35 median acted as a resistance for a long time, however, the RSI marker has breached the resistance and is at 66.26 median. This also suggests that XMR was in the overbought zone.
Source – XMR/USD on Trading View
However, the 50 and 100 moving average was spinning a different story as the 5o moving average was seen below the 100 moving average indicating bearish market. The bearish crossover took place on 16 November and they were seen acting as resistance ever since; however, the resistance was breached during the formation of the descending channel pattern and the acting resistance of 100 moving average was breached during the breakout from the descending channel Despite this, the 50 and 100 moving average were seen converging and is most likely to complete a bullish crossover.
Conclusion
The short term chart for XMR indicated the strong presence of bulls in its market and the price of the coin might breach the previously formed resistance.
