Monero: Will an 82% rally in 40 days help XMR reach $489?
The 61.8% level was at $246, a level from which the recent rally began.
- XMR has a sound long-term bullish outlook on the price charts.
- The breakout, consolidation, followed by another breakout, underlined the strength of the asset over longer time horizons.
Monero [XMR] has rallied 82% since the 7th of April. The trading volume has been steadily high over the past year.
With its previous all-time high at $542, just 60% higher, the odds of a new all-time high later this year appeared good.
XMR presents a solid bullish case
The 1-week chart showed an asset breaking out of a multi-year consolidation phase in December. The $183 level, which had been a stern resistance since mid-2022, was flipped to support.
Till April, this support level was retested on multiple occasions.
The Fibonacci retracement levels plotted based on the drop in 2021-22 showed that the 61.8% level was at $246. Earlier this year, this level was tested as resistance, but a breakout was not possible.
Over the past year, the trend of high trading volume has accompanied Monero’s breakout, consolidation, and the subsequent rally this May.
For long-term investors, this was excellent news, as it showed heightened demand and conviction.
The 1-week chart painted an intensely bullish picture. It might be a slightly late for FOMO, but it appeared that XMR was setting up to climb to a new all-time high.
In the coming weeks, the 23.6% and 61.8% extension levels at $396.8 and $489.5 would be the next targets.
On the 1-day chart, Monero retained its bullish fervor. The CMF was at +0.12 to signal heavy capital inflows.
The trading volume has picked up from April, as evidenced by the rising 20-period moving average for the volume bars.
The MFI did not yet signal an overextended market on the 1-day timeframe. Hence, the strong upward momentum could carry XMR a little higher.
Since the 9th of April, Bitcoin [BTC] has traded within a short-term range.
During this time, Monero managed to rally 13.7%. These returns were on par with Ethereum [ETH]. This relative strength against BTC and ETH was another hint of bullish strength.
Holders may wait for a move to $400 and $500 to realize further profits.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
