Monero Price Shows Major Upward Support Forming: Analysis

Monero price shows major upward support forming and shows that the altcoin has a bearish-term and medium-term trading bias as we are reading further in the Monero news.

The four-hour time frame shows that there is a bullish inverted head and shoulders pattern triggered. The monero price shows double-digit gains following the strong bullish reversal from the $45 and the cryptocurrency is now trying to recover from the eight-month trading low. The XMR/USD pair declined by more than 30 percent since the start of the month and is now trading around 58 percent lower than the current 2019 trading high.

The technical analysis shows that the XMR/USD pair is still technically bearish over the short and medium-term but the signs show that the price could be sustainable in the medium term.  The four-hour time frame shows that there is an inverted head and shoulders pattern that has been triggered with the $65 level and the overall upside objective of the bullish pattern target.

The rally towards $65.00 could also help to create a much bigger reversal pattern that could eventually send the XMR/USD pair towards the $85.00 level. The daily time frame shows that the sellers are testing the top of a falling wedge pattern during the recent decline and the buyers successfully defending the technical tests. The daily time frame shows that the pair will be put in a prime position if the buyers can accelerate the recent recovery to the $78.00. This could help the price rise above the 200-day moving average and get its technical bullish status.

The relative strength index on the daily time frame only shows that the recovery is pulling monero away from oversold positions. According to the latest sentiment data, the short-term sentiment towards the altcoin is neutral at 56 percent while the long-term sentiment for the altcoin is neutral at 33 percent. If the coins manage to break above the $91 level, this could boost the altcoin to a new strong form of technical resistance. The daily time frame is now showing four lower price highs and taking a break above the most recent swing at $91.

The daily time frame is explaining that the XMR/USD is trading below the 50-day moving average standing at $87 but above its 200 day moving average. The charts show that the XMR/USD pair has a very strong medium-term technical support around the $52 level.