Monero dropped by around 10% in three days after it established a week-to-date high of around $290 on the 24th of April. Nevertheless, several technical factors did suggest that the USD/XMR pair was pretty poised at resuming its uptrend over the next couple of months. Notably, the price of XMR did break out of its falling wedge structure in late March. It further continued to get its move upside in the daily sessions that took place later- with rising volumes going on to indicate a bullish sentiment among most of the traders of the cryptocurrency.
Monero Will Make Sure Of XMR’s Transactional Anonymity
Traditional analysts have often considered falling wedges a sign of bullish reversal patterns- or that the price first consolidates within a contracting descending channel- which is then followed by a strong bounce to the upside. According to the rule in place, the breakout target of the falling wedge for cryptocurrencies like Monero does come to stay at nearly the level at length equal to the maximum distance between the upper and the lower trendline of the pattern.
The falling wedge of Monero is currently up by around $250. At the same time, the breakout point of the structure sits comfortably at around $210. As a result of this, the token’s upside target does come to a point near $470, which is more than 75% of the price set on the 24th of April. Nevertheless, XMR still has to close above a sum of $300- which is a psychological resistance level, in order to confirm its move towards the target.
The bullish outlook for the cryptocurrency also comes up usually in the months that lead to the hard fork of Monero. Interestingly, the cryptocurrency will also be undergoing a tentative upgrade for its protocol in July- which precedes a testnet deployment in May. The update does aim to increase the size of the ring from 11 to 16 in order to maintain the anonymity behind XMR transactions.