Monero (XMR) jumps more than 80% in just 3 days, watch this analysis to find out where it is headed

The price of the XMR cryptocurrency is having good days after the recent market crash. Only in the last 3 days, Monero accumulates a profit of 82.98%, and if you want to discover where the price could be heading, you should review this technical analysis.

At the time of this writing XMR is trading at $ 252, accumulating a loss of 8% in the last 24 hours.

Monero starts to make higher and higher lows and highs

Before the massive drop occurred last Black Wednesday in the crypto market, like other currencies, XMR had been manufacturing small lows and increasingly lower highs. This warned of a clear bearish bias in the very short term, while a much larger trend corrected a bit.

Of course, no one, or very few, expected the crash to be of such magnitude as we saw it.

Among all the extreme fear that was experienced, Monero, the leading currency in the privacy sector, lost up to 66.86%, touching a low of $ 171, weeks after reaching a record high of $ 517.

However, after the super low prices that were hit, buyers who trust the projects behind cryptocurrencies came back excited to take advantage of discount prices.

Thanks to this, today Monero with a price of $ 251 has recovered more than 90% in less than 3 days. This makes us think that the end of the pullback has already occurred, evidenced by a bearish intention quickly embraced by demand, and leaving the crash as a simple excess of volatility.

XMR vs USD 4-hour candlestick chart. Fountain: TradingView.

Monero analysis and forecast

As I mentioned, it seems that what we saw was a correction, healthy and necessary as well. Assets don’t go straight up to the moon, and cryptocurrencies are no exception.

From the weekly chart of XMR vs USD we see the sharp decline. But after 3 days, the long fuse tells us of a strong exhaustion of the bears.

With the crash, the price of Monero went to visit the weekly support where the previous boost was started. This support is the one that should be broken if we want to think about sales.

If we analyze the weekly candle in progress, its body is about to close above the 61.8% Fibonacci level, the optimal retracement level, and from where it may be starting a next bullish impulse.

If the resistance zone left by the high of Monero in 2018 is crossed, which is most likely, the analysis of the Fibonacci Retracement tool gives us a forecast of $ 730. But, keep reading this article to see why I think this goal may fall short.

Analysis and forecast of Monero in 2021. Weekly chart XMR vs USD. Source: TradingView.
Analysis and forecast of Monero in 2021. Weekly chart XMR vs USD. Fountain: TradingView.

Long-term momentum should take us much higher

When we look at the monthly XMR vs USD chart, we notice how this cryptocurrency is resuming the long-term trend, one that could easily take us much further from the current price.

The ongoing bullish cycle, which started in mid-March 2020, is barely challenging the resistance left by the 2018 high (which marked the start of a large corrective cycle).

Although past behavior does not assure what may happen in the future, the cycles generally resemble each other.

The previous bull cycle, which started in late 2015, lasted for more than 2 years. The current one has been around for just over a year, and it hasn’t even escaped into uncharted terrain, which is where volatility is most noticeable.

Chart points to XMR vs. USD. Source: TradingView.
Monero monthly chart analysis. Fountain: TradingView.

You should still do a fundamental analysis of Monero if you really want to put some confidence in this technical forecast. If you want us to do that fundamental review here at CryptoTrend, leave us a comment.

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Monero (XMR) jumps more than 80% in just 3 days, watch this analysis to find out where it is headed

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