Monero’s price dipped from its July 3 peak of $172 to $136 on August 24. Since then, it showed a 15% recovery, climbing to $156 by October 9, and currently hovering at $152.
Considering Monero’s price has been trading in a range since June of the previous year and the fact that it found strong support on August 24, there is a possibility that the current uptrend may transform into a more significant surge, potentially exceeding its July peak and sparking a breakout.
In May 2021, Monero reached an all-time high of $518, edging past its previous peak from December 2017. However, this summit was short-lived as the price entered a bearish phase, plunging to $100 by June 18 the following year, marking an 80% decline.
In May 2021, Monero reached an all-time high at $518, just slightly surpassing its previous peak in December 2017. However, this zenith marked the beginning of a bearish phase, resulting in a drastic decline to $100 by June 18 the following year, representing an 80% plummet.
During this downturn, the price stabilized at the 0.236 Fibonacci level, derived from its historical all-time high to its nadir of $30 in March 2020. This period of stability gave rise to the formation of an ascending triangle pattern, defined by an upward-sloping support line and a horizontal resistance at approximately $175.
A closer look at the daily chart reveals that the low on August 24 constituted another interaction with the triangle’s support, which triggered a subsequent rebound. The pivotal question now revolves around whether Monero will ultimately break free from the confines of this ascending triangle or if this movement merely signifies a continuation of its sideways trajectory.
Upon a closer examination of the 4-hour chart and a detailed analysis of the wave structure within the ascending triangle, it becomes clear that this horizontal consolidation is most likely a corrective phase.
This movement aligns with a five-wave corrective pattern, specifically labeled as WXYXZ, which seems to be a consolidation phase following a more pronounced downward trend. These waves can be further deconstructed into smaller ABC patterns, indicating the impending completion of the final ABC sequence for the Z wave.
By projecting the length of wave A onto wave C, we arrive at a target near the triangle’s resistance, approximately at $175. This projection suggests that in the short term, Monero may experience an increase of around 14% from its current position. However, this potential surge may encounter resistance, potentially setting the stage for a potential breach below the triangle’s support.
If such a breach occurs, we might witness a decline that exceeds the June low, possibly reaching a bottom near $80. Conversely, if Monero’s price successfully surpasses the $175 mark, it would invalidate this bearish outlook, indicating a shift towards a more optimistic perspective.
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.