Monero’s falling wedge breakout puts XMR price in for a new rally and the bullish setup only gears up the major hard fork in July 2022 so let’s read more today in our latest Monero news.
Monero’s price dropped by 10% three days after the establishment of a week-to-date high of around $290 and a few technical indicators suggested that XMR/USD pair is poised to resume the uptrend in the next few months. XMR’s price broke out of the falling wedge structure and continued its move upside the later daily sessions with the increasing volumes indicating a bullish sentiment among the Monero traders.
Traditional analysts consider falling wedges as bullish reversal patterns and the price first consolidates within contracting and a descending channel followed by a strong bounce to the upside. As a rule, the falling wedge’s breakout target came to be near a level equal to the maximum distance between the lower and upper trendline. Monero’s falling wedge is up to $250 long and in the meantime, the structure breakout point sits around $210 as a result, the Monero tokens upside target came to be near $470 up more by 75% from today’s price.
XMR still needs to close above the $300 level and the psychological resistance level to confirm the move towards the falling wedge target.XMR’s bullish outlook still seems in the months leading up to the Monero hard fork and notably, Monero will undergo a tentative protocol upgrade in July and preceded a testnet deployment in May with the update aiming to increase the ring size from 11 to 16 to ensure that the XMR transaction has bigger anonymity set to make it harder to find the transaction source.
The hard fork announcement appeared against the backdrop of the rising demand for privacy coins amid the geopolitical and economic turmoil. XMR’s strong fundamentals underpin the bullish wedge setup and Monero is also at risk of retracement in the short term. XMR corrected lower after testing $278 repeatedly as a resistance in the last three days and increase the possibility that can continue lower. This will present the next downside target semes near $227 with the 0.236 fib line of the Fib retracement graph drawn from $493 high to $145 swing low.
The decisive move above $278 can have XMR test $320 as the interim upside target.
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