According to the TD Sequential indicator, Monero (XMR) exhibits a buy signal across its three-day period. The signal from analyst Ali (@ali_charts) indicates a possibility for trend transformation after an XMR price fall.
Technicians heavily utilize the TD Sequential indicator for identifying target points when trends show signs of exhaustion. The signal shows a complete 9-count sell pattern during the market peak followed by a downtrend that has now printed a 9-buy signal. This type of technical configuration historically shows potential bottom formations, which makes it significant for market participants.
Monero Analysis by Ali Charts
Confirmed Downtrend
The extended decline of black candlesticks verifies the extended correction phase which began when XMR surpassed $240.
TD Sequential Buy Signal
The 9-count at the bottom creates a TD Sequential Buy Signal that indicates the potential decline of selling pressure as a positive sign for market recovery.
Key Support & Resistance Levels
Monero (XMR) markets its value in the $210 range, while the closest available support is $205. An upward trend would most probably encounter resistance between $230 and $235.
Despite the bullish implications of the TD Sequential buy signal, traders should verify its authenticity through both price and volume indicators. Technical analysis aside, traders should also focus on fundamental analysis. A long green candlestick closing above relevant resistance barriers will validate the optimistic market expectation. Additional downside risks exist if XMR fails to maintain a position above its supportive levels.
Market participants will monitor future price action to confirm if this potential buying opportunity results in extended upward price movement.
