While a bullish reversal of the trend has yet to be confirmed, there are important signs in the long- and short-term timeframes for Monero that indicate that the XMR price will continue to rise.
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Monero attacks 665-day resistance line
As the weekly chart’s technical analysis indicates, 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.
<This week the price is trying to make a bullish break of the long-term downside resistance, which has been on the chart for 665 days. A break of this long-term structure will indicate the end of the previous correction. However, the price of XMR has not yet been able to close above this resistance line.
Source: TradingView
Despite this rise, the weekly RSI does not confirm the legitimacy of the bullish breakout. Traders use the RSI as a momentum indicator to assess whether the market is overbought or oversold and to decide whether to accumulate or sell an asset.
The RSI is used by traders as a momentum indicator.
If the RSI values are above 50 and the trend is upward, the bulls still have the advantage, and vice versa. Although in the case of XMR, the RSI index is slightly above 50, it has been fluctuating 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 weekly timeframe reading is still foggy, the daily chart reflects a decidedly bullish outlook. There are several reasons for that.
First, the price of XMR has strengthened rapidly since June 10, when it hit a one-year low. At the moment the rate is up 34% without experiencing any pullback at all.
Secondly, Monero made a bullish break of the short-term descending resistance line, which was present on January 29.
Second, Monero made a bullish break of the short-term downward resistance line, which has been on the chart since January 29. This is a sign that the short-term correction is over.
In support of this scenario, the XMR price rose above the Fibo 0.618 retracement level at $164. The Fibo level of 0.618 most often acts as resistance when the price returns to it, and often causes a pullback. So its breakout is an important bullish signal.
Finally, the daily RSI is above the 50 mark and rising.
Source: TradingView
So the most probable forecast for XMR is for the price to continue rising and to make a bullish break-down of the long-term descending resistance line. Should that occur, it might head towards the next long-term resistance at $260.
<Meanwhile, a daily close below the $164 area would indicate that the trend remains bearish. In that case, the most probable scenario is for the price to fall and retest the $140 level.