• Monero [XMR] broke above its consolidation range of $146.1 – $157.6 on 24 March, but the bulls‘ rally was undermined by Bitcoin [BTC]’s drop from $28K.
• Bulls could get buying opportunities if BTC reclaims the $28K, especially if XMR’s pullback retests its upper channel’s boundary.
• The long/short ratio leaned towards bulls, and the RSI value and OBV showed that XMR was bullish on the 12-hour charts.
Monero Breaks Above Consolidation Range
Monero (XMR) witnessed an elevated market uncertainty in February and the first half of March that saw it drop sharply from $187.2. However, increased demand for crypto prompted by the U.S. banking chaos pushed XMR back up to $134.6, and a patterned breakout with a potential target at $168.8 based on the channel’s height occurred on 24 March as bulls took control of price action. Unfortunately, Bitcoin (BTC)’s temporary drop from $28K has derailed this rally since then, creating a chance for new buying opportunities should BTC reclaim the key level and XMR pullback to retest its upper channel’s boundary at $157.6.
Technical Indicators Show Bullishness
At press time, technical indicators show that XMR is still in favor of bulls despite the recent setback caused by BTC’s downward move: The Relative Strength Index (RSI) value is 62 showing XMR is bullish on 12-hour charts; On Balance Volume (OBV) also shows a sharp uptick indicating an increase in trading volume which boosts buying pressure; Lastly, exchange long/short ratio leans towards bulls at 51.3%. These metrics paint an overall bullish outlook for XMR should BTC regain lost ground above $28K soon enough allowing investors to make profitable moves with proper timing when XMR retests its upper channel’s boundary of $157.6 or even blasts towards its target of 168 without necessarily going through this process again.
Funding Rate Could Tip Bears To Pull Back Price
However, there are still some risks associated with investing in XMR as funding rate has remained relatively negative since 24 March which could tip bears to pull it back to retest the channel’s upper boundary offering another opportunity for entry with stop loss being placed at mid-level ($151). Additionally, a close below lower channel’s boundary ($146) could attract intense selling pressure leading to further losses down south as far as previous support around 134 would be tested again if this happens .
In conclusion, Monero [XMR] seems bullish based on technical data such as RSI & OBV values however Bitcoin [BTC]’s slump might have been set it back for now waiting for possible buy opportunities once BTC reclaims its lost ground above 28k zone while offering other entry points should it decide to pullback and test its upper channel’s boundary targeting 168 before any further progress is made northbound taking into account all risks associated with investing such as negative funding rate which can tip bears anytime resulting in further losses down south depending on circumstances .