XMR’s resilience shows promise for the bulls

Fibo Quantum

The Monero price is finding its feet and showing encouraging signs of turning higher. If XMR can clear $234, a run at $300 could be on the cards.

Monero is last trading at $203.20, higher by $5.342 (+2.79%).

Privacy coin Monero has lost just 4% over the last seven days despite many of the top 20 cryptos suffering much larger declines. This is certainly encouraging and reinforces its potential in the face of concerted government crackdowns on cryptocurrencies.

Monero’s obfuscated public ledger has come under the scrutiny of the US Inland Revenue Service (IRS), who last year offered a $625,000 bounty for anyone who can crack the Monero code. But, the more noise the regulators and tax authorities make, the bigger the appeal of Monero for those drawn to XMR’s anonymous, under-the-radar transactions.

XMR price forecast

Looking at the daily chart, a clear support level is visible around $182.00, linking a series of low points from the 23rd of May. Furthermore, this level aligns with five multi-year high closing prices from January.

Additionally, it’s notable that the Monero price has recovered more than 40% from the depths of the May 19th crypto collapse low of $136.35.

Also, the Relative Strength Index reverses higher and progressing to the upside. The Moving Average Convergence Divergence Indicator also remains in positive territory.

However, a robust downtrend from the 19th of May high at $438.50 is seen at $234.00. Crucially, since the 22nd of June, the price has failed to clear this level, resulting in a clear horizontal resistance adding to the significance of $234.00.

Finally, the 50-day moving average at $235.26 adds to the necessity for the bulls to advance the price beyond this point.

Even in that instance, the 200 DMA at $246.18 offers the next challenge above the critical $232.00 barrier.

However, if the Monero price manages to punch through this tight band of resistance, it will make a statement that the recovery is well underway. A logical target then becomes the 100 DMA at $295.33, coincidentally just below February’s three-year high of $299.27.

This bullish outlook remains valid as long as XMR remains above $182.00. Should the price fall beneath this support, the May 19th low of $136.35 should follow.

However, given the technical outlook, I predict a test of $234.00 comes first.

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Monero price chart (daily)

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