A double bottom is forming on Monero cryptocurrency (XMR) chart, which indicates an upcoming reversal. Therefore, XMR/USD should rise to $215 by January 17.
Thanks to the New Year’s pump on January 1, Monero value reached its ATH for the last month – $252 (Kraken data). However, the bears seized the initiative and began to dump the price of coins. During the week, the XMR rate collapsed by 29% and reached a local bottom around $ 179.
The value of the asset bounced back from the support zone, which is in the range of $175-180. Moreover, the dump stopped on Bitcoin (BTC) and Ethereum (ETH) markets, and the correction began. These factors suggest that Monero will become more expensive over the coming week. Most likely, the price of the coin will rise to at least $215 – this mark coincides with 50% Fib, taking into account the dump from $253 to $179.
The double bottom is still unfolding. Firstly, the second bottom was slightly higher than the first ($179 against $177). Secondly, reaching the second bottom was accompanied by a decrease in trading volume. The pattern will be confirmed if the asset rate goes up during the next two sessions against the background of an increase in the number of coins purchased. If the trading volume does not increase, then it is worth betting on a downward trend.
In case of a favorable situation, XMR will quickly soar to resistance at $ 250. If the bulls gain a foothold above this barrier, it will become a support barrier. At the same time, the development of the pattern implies a rise in the price of the cryptocurrency to $ 325.
Since May 2021, the bears have made many unsuccessful attempts to break through the support in the area of $ 170-180. The price of the coin was always pushed away from this barrier due to the activation of buyers. Accordingly, sellers will take this barrier only in the case of a massive dump, which is not yet expected. Thus, the purchase of Monero at the current cost is characterized by low risks and will bring 68% profit if the XMR rate rises to the target price of $ 325.