Disclaimer: The information presented does not constitute financial, investment, trading or any other advice and is solely the opinion of the author
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 March 24. However, the bulls’ rally has since been undermined Bitcoin [BTC] Lost $28K.
Bulls could face new buying opportunities if BTC reclaims the $28K, especially if XMR’s pullback retests the upper channel boundary.
Read Monero [XMR] Price prediction 2023-24
Can the bulls prevail?
Source: XMR/USDT on TradingView
Due to heightened market uncertainty in February and the first half of March, XMR fell sharply from $187.2. But the banking chaos in the US boosted XMR and the rest of the cryptocurrency, boosting demand to $134.6. But the first leg of the recovery got stuck in the price consolidation range.
On March 24, bulls triggered a breakout with a potential target of $168.8 based on the channel’s high. However, BTC’s temporary drop of $28K has derailed the rally.
A pullback retest at the channel’s upper limit ($157.6) could provide new buying opportunities, targeting the potential $168.8 – 7% rally.
The stop loss could be placed at the channel’s mid-level of $151.8 with an entry of $157.6. Other major resistances to the north are $179.1 and $187.2.
Alternatively, bulls could get secondary buying opportunities if XMR retests the channel’s lower limit of $146.1. But a close below $146.1 could provide intense selling pressure, sending XMR down to its previous support of $134.6.
At the time of writing, the RSI reading was 62, indicating that XMR was bullish on the 12-hour charts. The OBV (On Balance Volume) also showed a sharp increase, indicating that trading volumes have increased, increasing buying pressure.
The long/short ratio tended towards bulls
Source: Coinglass
The exchange XMR long/short ratio showed longs dominated at 51.3% at the time of going to press. It shows that medium- and long-term investors were bullish on the asset.
Therefore, XMR could shoot towards $168.8 without necessarily retesting the $157.6, especially if BTC rebounds strongly to the $28K zone.
Is your wallet green? Check the XMR Profit Calculator
However, XMR’s funding rate has remained relatively negative since March 24, which could tip bears into pulling it back to retest the channel’s upper limit. Therefore, investors could make the right timing and more profitable moves if they follow BTC’s price action.
Source: Coinglass
This post Moneros [XMR] bullish breakout; is the second leg of the rally feasible?
was published first on https://ambcrypto.com/moneros-xmr-bullish-breakout-is-the-second-leg-of-the-rally-feasible/
