Monero (XMR) has shown signs of long-term bullish potential, marked by a golden crossover and a breakout from a consolidation pattern. This analysis is provided by CoinDesk analyst and Chartered Market Technician Omkar Godbole.
Over the past 12 weeks, gold (XAU) has outperformed Bitcoin (BTC), drawing more bids in a race to attract investors. However, this trend may be on the brink of reversal, according to technical analysis.
Gold has surged 22% this year, driven by safe-haven bids and arbitrage strategies where traders move physical gold from overseas to the U.S. to capitalize on premiums at the Comex. In contrast, Bitcoin has seen a decline of over 8%, contributing to a 25% drop in the Bitcoin-gold ratio, which measures Bitcoin’s USD price per unit against gold’s USD price per ounce.
Despite the bearish trend, the Bitcoin-gold ratio broke out this week, surpassing trendlines drawn from the January 20 and March 3 highs. This bullish breakout suggests that Bitcoin may soon catch up to gold’s recent rally.
Further backing this shift is research from Theya Research’s Joe Consorti, who found that Bitcoin typically lags gold by 100 to 150 days. The breakout of the trendline coincides with a positive flip in the MACD histogram, signaling a change in momentum, while the bullish crossover of the 5-day and 10-day simple moving averages (SMA) further confirms the upward shift.
Monero’s Bullish Outlook Strengthened by Golden Cross
Monero (XMR), the privacy-focused cryptocurrency, has also demonstrated a positive outlook after a significant recovery from $165 to over $200 in the past week, leaving a “long-tailed” candle on the weekly chart. This candlestick formation suggests strong demand at lower price levels.
Monero has broken out of a prolonged consolidation pattern, with its 50-week SMA crossing above the 200-week SMA, confirming a golden crossover. This technical indicator signals a potential long-term bullish shift for the token.
Immediate resistance for Monero is seen at $242 (the February high), followed by $289 (the April 2022 high). Support levels are at $200 and the recent low of $165.
