Privacy focused cryptocurrency Monero is flashing bullish signals after weeks of downward pressure. Recent technical data shows that XMR has broken out of a falling wedge pattern on the daily chart, a formation traders often associate with trend reversals.
After dipping to a yearly low near $284, buyers quickly stepped in. As a result, Monero climbed roughly 9 percent to an intraday high around $344. The rebound also pushed its market capitalization back above $6.3 billion, signaling renewed market confidence.
Technical Indicators Point to Strength
The falling wedge breakout did not occur in isolation. Momentum indicators also turned supportive.
Key bullish signals include:
- A confirmed breakout from the falling wedge pattern
- A bullish MACD crossover on the daily timeframe
- RSI levels approaching oversold conditions before the bounce
These indicators often precede stronger upside moves. Furthermore, the breakout suggests that sellers may be losing control in the short term.
However, traders remain cautious. Analysts say XMR must clear the 200 day EMA near $381 to confirm a broader trend reversal.
Historically, the $420 zone has acted as major resistance for Monero. In previous market cycles, rallies stalled around this level before either consolidating or pulling back.
If bulls push the price above $381 and sustain momentum, the next psychological target sits near $420. A decisive break above that area could open the door for a stronger recovery phase.
Market participants are focusing on three key factors:
- Holding above the breakout zone
- Flipping the 200 day EMA into support
- Breaking through the $381 to $420 resistance band
At the same time, growing interest in privacy coins continues to support sentiment. Still, a drop back below recent support could invalidate the bullish setup and invite fresh selling pressure.
