While our trade recommendation did hit the target, what we missed is the bigger picture breakout. XMR/ETH also broke out of a large descending triangle on the daily chart. This breakout fueled the rally to 0.59777 on September 12. Even though we missed this rally, we were confident that we’ll be able to buy the dip. This opportunity is presenting itself today.
Technical analysis shows that XRP/ETH has broken out of the large bullish pennant on the daily chart. The breakout indicates that the consolidation is over and the market is ready to resume its uptrend. The breakout looks convincing as well. Volume suddenly spiked suggesting that bulls are ready to buy more Monero.
In addition, the strong move of this market can be attributed to the slump of Ethereum and the surge of Monero. As long as Ethereum remains weak, we can expect XMR/ETH to continue its ascent.
The strategy is to buy the breakout as close to 0.51 as possible. As long as the market is above this level, it has the momentum to climb to our targets of 0.70 first and then 0.80.
The process may take more than a month.
Daily Chart of Monero/Ethereum on Binance
As of this writing, the Monero/Ethereum pair is trading at 0.52454 on Binance.
Summary of Strategy
Buy: As close to 0.51 as possible.
Target: 0.70 and then 0.80.
Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.