Monero’s [XMR] bullish breakout; is the second leg of the rally feasible?

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

• Higher and lower timeframe charts were bullish.
• Bulls had slight leverage based on the long/short ratio. 

Monero [XMR] broke above its consolidation range of $146.1 – $157.6 on 24 March. However, the bulls’ rally has been undermined after Bitcoin [BTC] lost hold of $28K.

Bulls could get new buying opportunities if BTC reclaims the $28K, especially if XMR’s pullback retests its upper channel’s boundary. 

Read Monero [XMR] Price Prediction 2023-24

Can the bulls prevail?

Source: XMR/USDT on TradingView

The elevated market uncertainty witnessed in February and the first half of March saw XMR drop sharply from $187.2. But the U.S. banking chaos boosted XMR and the rest of the crypto, prompting increased demand at $134.6. But the first leg of recovery got stuck in the price consolidation range. 

On 24 March, bulls inflicted a patterned breakout with a potential target at $168.8 based on the channel’s height. However, the BTC’s temporary drop from $28K has derailed the rally.

A pullback retest on the channel’s upper boundary ( $157.6) could offer new buying opportunities, targeting the $168.8 – 7% potential rally. 

The stop loss could be placed at the channel’s mid-level of $151.8 with an entry at $157.6. Other key resistance northwards includes $179.1 and $187.2. 

Alternatively, bulls could get secondary buying opportunities if XMR retests the channel’s lower boundary of $146.1. But a close below $146.1 could attract intense selling pressure, dropping XMR to the previous support at $134.6. 

At press time, the RSI value was 62 showing XMR was bullish on the 12-hour charts. The OBV (On Balance Volume) also showed a sharp uptick, indicating trading volumes increased, boosting buying pressure. 

The long/short ratio leaned toward bulls

Source: Coinglass

The exchange XMR long/short ratio showed longs dominated at 51.3% at the time of press. It shows investors were bullish on the asset in the mid and long run.

Therefore, XMR could blast towards $168.8 without necessarily retesting the $157.6, especially if BTC rebounds strongly to the $28K zone. 

Is your portfolio green? Check the XMR Profit Calculator

However, XMR’s funding rate has remained relatively negative since 24 March, which could tip bears to pull it back to retest the channel’s upper boundary. Therefore, investors could make proper timing and more profitable moves if they track BTC’s price action. 

Source: Coinglass