The price of Monero (XMR) has risen significantly since hitting an annual low on June 10, with various timeframes providing important bullish signals.
While a bullish trend reversal has yet to be confirmed, there are important signs on the long and short term Monero timeframes that the XMR price will continue to rise.
Monero attacks the 665-day resistance line
One of the most popular anonymous cryptocurrencies rose significantly after rebounding from the $130 horizontal support area (green icon) in the week of June 5-12, as shown by the results of the technical analysis of the weekly chart.
This week the price is trying to make a bullish breakout of the long-term descending resistance line, which has been present on the chart for 665 days. A break of such a long-term structure will indicate the completion of the previous correction. However, XMR price has not yet been able to close above this resistance line.
Despite this rise, the weekly RSI does not confirm the legitimacy of the bullish breakout. Traders use RSI as a momentum indicator to assess whether the market is overbought or oversold and decide whether to accumulate or sell an asset.
If the RSI values are above 50 and the trend is up, the bulls still have the upper hand and vice versa. Although the RSI is slightly above 50 in the case of XMR, it has hovered on both sides of the 50 mark (highlighted) since mid-July 2021. This is considered a sign of an unformed trend.
XMR Forecast: Is Monero Ready to Explode?
While the readings on the weekly time frame are still hazy, the daily chart shows a decidedly bullish outlook. There are several reasons for this.
Firstly, the price of XMR has rapidly strengthened since June 10, when it hit a yearly low. At the moment, the rate has risen by 34%, without experiencing any rollback.
Secondly, Monero made a bullish breakout of the short-term descending resistance line that has been on the chart since January 29th. This is a sign that the short-term correction is complete.
This scenario is also supported by the fact that the price of XMR has risen above the Fibo 0.618 retracement level at $164. Fibo level 0.618 most often acts as resistance when the price returns to it, and often causes a pullback. Thus, its breakout is an important bullish signal.
Finally, the daily RSI is above 50 and rising.
Thus, the most likely outlook for XMR suggests that the price will continue to rise and make a bullish breakout of the long-term downward resistance line. In this case, it may head towards the next long-term resistance at $260.
Meanwhile, a daily close below the $164 area would mean the trend remains bearish. In this case, the most likely scenario would be a fall in price and a retest of the $140 level.
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