The Monero (XMR) price has reached a long-term resistance level of $351 but failed to break out.
XMR could drop once more and validate the previous breakout level as support. Despite this, another upward movement and an eventual breakout are expected.
Long-Term Levels For XMR
On Feb. 19, XMR was rejected by the $289 resistance area, which is the 0.5 Fib retracement level of the entire previous drop.
After roughly a month of consolidation, it made another attempt at moving upwards and managed to reach the 0.618 Fib retracement resistance at $351. The high was reached on April 17 and was the highest price since Jan. 2018.
Another rejection ensued and the token is now retracing.
Despite the drop, technical indicators are bullish. The RSI & MACD are increasing, even if the former is overbought. Furthermore, the Stochastic oscillator is moving upwards. A bullish cross in it would also serve as further confirmation that the trend is bullish.
The previous resistance at $289 is now expected to act as support.
Pullback And Bounce
The daily chart shows that yesterday’s drop only served to validate the previous breakout level as support. Also, it created a long lower wick.
Furthermore, the current movement may be a fourth-wave pullback.
Technical indicators are still bullish. Both the MACD & Stochastic oscillator are positive.
While the RSI is decreasing, it could generate hidden bullish divergence, depending on today’s close.
Therefore, it is likely that XMR bounces and makes another attempt at moving above the $351 resistance area.
XMR/BTC has been moving upwards since the beginning of the year. The rate of increase accelerated at the beginning of April.
However, the token is facing resistance at ₿0.0064. Until it breaks out, we cannot consider the trend bullish.
Nevertheless, indicators suggest that a breakout will transpire. The Stochastic oscillator has just made a bullish cross. The RSI has crossed above 50. The MACD has given a bullish reversal signal.
If successful in breaking out, the token would find the next closest resistance area at ₿0.011.
To conclude, XMR is expected to find support above $290. Afterwards, a breakout is expected.