Hello traders! Let’s have a look at Monero vs USDT on the Daily timeframe. We can see that price has bottomed out at $25, which is quite a strong psychological support level. We have applied the Fibonacci retracement indicator, to the overall trend down.
It is clear that the 23.6% retracement level has been broken, which means that price is heading towards the next Fib retracement level. This is a 38.2% retracement at $61.93. It also corresponds to the 200 Exponential Moving Average and could be the key or a decision-making price for the long term price development. If this level will be broken, Monero is likely to move towards 50% at $73.32 or 61.8% at $84.7.
The 1-hour chart below shows that the downtrend trendline has been broken along with the 200 EMA. Then, on the correction down, the price has cleanly rejected the trendline produce higher high and then on the next correction rejected the 23.6% Fibs. We can clearly see higher highs and higher lows pattern, suggesting growing bullish sentiment. Perhaps XMR/USDT is at the starting point of another wave to the upside.
But a the same time there is a strong support area between $54-55. It is possible that the price will correct down and re-test the 200 EMA, before/if it will move up. But only 1H candle break and close below $54 will invalidate bullish outlook and Monero could drop down to $50-51 area.
Bias: Strongly bullish while above $54
Potential Support Zone: $54-56
Potential Targets: 61.93, 73.32, 84.70
Have a profitable trading!