If we close this week above the Falling Wedge resistance line, we might see a trend reversal for XMRUSD, and the target of our Falling Wedge breakout pattern would be taking the privacy focused cryptocurrency back to the lower 400s. The hammer candle that formed 2 weeks ago touched the $80 support area (blue box), that was formed in September/October 2017. As we place our stop loss a little below this support area, we get a nice Reward to Risk ratio of about 6 : 1.
Other TA that supports this theory:
Other TA that supports this theory:
- Stochastic RSI has been ranging in oversold territories since May, but is now climbing up
- This week's volume is the biggest since March, and we see this not only on Kraken, but on all major exchanges.