Looking at the Monero XMR/USD hourly chart we can see that the price action has formed a cluster inside a symmetrical triangle but with a bit steeper support line which indicates that buyers are more aggressive at the moment.
Also, my Elliott Wave count indicates that more upside is to be expected for the price of Monero but how much is this uptrend going to last and how far can the price go considering that this recovery started 20 days ago on 14th of August.
Zooming out to the daily chart we can see that the price action is in a corrective descending wedge from the 20th of December when the price was $483 and measured till the August 14th low the price has declined by 82.5%.
Looking at the wave structure I have labeled three intermediate WXY correction – first a Zigzag, second in an opposite direction and then this current one which I think also consists of the opposite direction WXY – seeing how the current minor Y wave will develop will validate my count.
Having said that I think that after this upswing is done we are going to see another 12345 impulse to the downside which would be the final wave Y of the third intermediate correction. As you can see the price is already starting to experience some resistance – indicated by the wich on the daily chart, buy the hourly chart shows us that there is more room for the price to go up.
In theory, the price can go up to the levels of the minor W wave at $148, but I think that is highly unlikely and we are rather going to see the minor Y end around $132 level and quickly go back down leaving a wick on the daily candle much like it looks now.
After that happens as I said I would be expecting more downside for the price of Monero and the first horizontal level I see strong enough to hold the momentum behind the potential selloff would be around $44.59
As you can see from the chart above there just isn’t anything in between which is why I have projected that target as a primary one considering that the wedge resistance is intersecting the horizontal level there also. From the all-time high at $483 to the projected target around $44 that would be a 90% retracement which some of the other cryptocurrencies that I have covered in these analyses already experienced. So another significant drop wouldn’t surprise me.
All content on Blockonomi.com is provided solely for informational purposes, and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security, product, service or investment. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate.