Monero trades at $364.11, gaining 1.99 on the day as it recorded a session high of $365.90. The market cap comes in at $6.83 billion. Trading volume has been $108.96 million over the trailing 24-hour period. The price just cleared the $358.07 area, which had put a ceiling on it for over the last two weeks and didn’t look back after reaching this mark.
The price pulled from the $300–$310 range in June and traded between $330 and $340 for two weeks after breaking out of range with an extremely bullish candle. Sellers couldn’t hold $330 to $340 with a strong break out of range without a retest. The breakout took place without a retest and the scenario is depicting that the bears failed to defend the $330 to $340 zone.
Every shorter timeframe looks like it’s showing its support. In fact, the price is above the 7-day and 30-day SMA and EMA and sitting on top of the 200-day EMA currently. The MACD Histogram is reading 3.76, and the RSI 14 (used for the short term) reading 63.01 seems strong but not quite stretched to the point that one or more hours can’t go higher. None of these indicators looks like the mark has reached saturation points.
Five averages heading in the same direction are not a common sighting absent a legitimate trend. It signifies a synchronicity where traders of various timeframes are leaning in the same direction from scalpers playing the 7-day line for a quick scalp to swing traders focused on the 200-day. Many participants in agreement signal that pullbacks are apt to find some support for buying.
The pattern inside that $330 to $340 box is worth slowing down on. Two weeks of tight range usually means one side is loading up while the other side waits. Traders who shorted inside that box were betting it would hold a third time. It did not. The candle that broke it did not pause at the top of the box to test supply.
The one level left is close and getting closer
The 200-day SMA is currently resting at $372.58, and it does appear like it’s the last rational hurdle. This digital asset’s price is currently higher than every other average that is worth anything in this long range and from this position, it’s just under three percent to that price point. After how cleanly it gave out around the $330-$340 range, it seems like $372.58’s main function would be as fuel on the next up leg rather than a support shelf.
The yellow line that is marked in the above chart is representing the mid-July high. Once the $372.58 level is cleared, a strong session can put that in range. In the case we get a breakout above that level, it would give an additional confirmation that this move has nullified the bounce category and will be called a trend shift.
The market bulls have gained control over the trend
The sellers just couldn’t hold the $330 to $340 area and broke right through quickly in the process, leading to what could be an extension of gains. On pullback, if the price bounces back from $358.07, it could be a very good position to make some real gains, as the previous area of resistance turned to support would be a very bullish sign. From here, $305 to $306 should be seen as major support, as there’s plenty of room in the broader trends. At the time of writing, the volume is at $108.96 million and has not risen significantly enough to fully confirm the breakout.
If the price is supported by the increased volume while it approaches the 200-day SMA at 372.58, the move will have more strength to make a breakthrough of the resistance. On the other hand, weak volume could possibly slow the move near $372.58 and could be leading to a consolidation phase before the next major move and market participants need to wait patiently.
