It is quite challenging to spot a cryptocurrency whose price has jumped by double digits over the past seven days, with Monero (XMR) among the few exceptions. Following the green wave, many market observers have become optimistic, expecting additional gains. Just the Beginning? XMR has crossed $400, currently trading at around $404 (according to CoinGecko), representing a 13% weekly increase. Its market capitalization has exceeded $7.5 billion, making it the 16th-largest cryptocurrency after overtaking Cardano’s ADA. XMR Price, Source: CoinGecko The exact catalyst for the resurgence remains rather unclear, yet certain analysts spotted the formation of bullish patterns that could support a more sustainable uptrend. Several days ago, X user The Moon Show claimed that XMR might be carving out a massive cup-and-handle structure. “I’m watching for a clean handle followed by a breakout above $430. If that happens, things could move very fast,” they said.
For their part, Lucky (an X user with almost two million followers) described the move north as a “special breakout from a special privacy gem.” The analyst argued that it has entered the bullish trend, projecting a pump to almost $600. Crypto With Gopal appears to be the biggest optimist. He opined that XMR has formed a massive triangle pattern, with the price consolidating near $400 after a strong recovery, as rising support and descending resistance squeeze momentum. “Bulls are holding the range as a major breakout setup develops. A clean breakout above the upper trendline could trigger a major expansion move toward the $1,000 target,” he forecasted.
The Bearish Signals It is worth mentioning that, based on two important factors, XMR’s rally could be abruptly replaced by a short-term pullback. The first is the asset’s Relative Strength Index (RSI), which measures the speed and magnitude of recent price changes to give traders an idea about possible trend reversals. It ranges from 0 to 100, where anything above 70 means that the coin has entered overbought territory and could be due for a correction. In contrast, ratios below 30 are typically interpreted as buying opportunities. As of now, the RSI stands at around 77. XMR RSI, Source: RSI Hunter The second element is XMR’s exchange netflow. In the past few months, inflows have dominated outflows, signaling that investors have abandoned self-custody and flocked to centralized platforms. This, in turn, increases immediate selling pressure. XMR Exchange Netflow, Source: CoinGlass The post Monero (XMR) Rises 13% Weekly as Analysts Expect Further Upside appeared first on CryptoPotato.