Can This Bullish Pattern Prevent Prolong Downfall In Monero Coin?

XMR Price Prediction: Using a falling wedge pattern, the Monero coin price gave its ongoing correction a specific direction. The coin price reverted from the converging trendlines several times indicating the market participants are strictly respecting this pattern. Thus, here’s how the XMR price may react upon the completion of this pattern.

Key points: 

• A potential bullish breakout from the overhead trendline may signal the recuperated bullish momentum.
• The 20-day EMA act as a dynamic resistance to the ongoing downfall
• The intraday trading volume in Monero coin is $88.5 Million, indicating a 10% loss.

Source- Tradingview

The Monero coin price initiated its ongoing correction phase when it turned down from the $187.5 peak on January 30th. The resulting five-week downfall tumbled the altcoin by 28.5% where it reached the combined support of $134.52 and support trendline of a falling wedge pattern. 

In theory, the most common outcome of this pattern is to encourage a bullish reversal as the price reached the support trendline which eventually offers a bullish breakout from the resistance trendline to resume the bullish recovery. 

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Thus, today the Monero coin rebounded from a lower trendline with a bullish candle showcasing a 4% jump. This bullish reversal should raise the coin price by another 5% to reach the overhead trendline. 

Until this pattern is intact, the XMR price will prolong its current correction phase.

On a contrary note, a bullish breakout from the pattern resistance trendline will signal an early sign for trend reversal and reignite the recovery phase.

Technical analysis

RSI indicator: the daily RSI slope moving sideways despite the falling price action indicates the growth in underlying bullishness. This bullish divergence indicates the coin price will eventually breach the overhead trendline.

EMAs: the 50-and-200-day EMAs moving sideways indicates an overall sideway trendline. Moreover, a death crossover between these slopes may offer additional confirmation the XMR price witnessed further correction before the actual breakout.

Monero Coin Price Intraday Levels

• Spot price: $140
• Trend: Bullish
• Volatility: Medium
• Resistance level- $153 and $170
• Support level- $134.5 and $125