Monero (XMR) rallied during the week ending October 11th, impulsively breaking above the $100 level and rallying up to the $120 level into the week's close. You can see that Monero has also started off this new week with a bang, rallying up over the $130 level. This is a textbook breakout pattern, with higher highs and higher lows.
(October 11, 2020 8:30 PM EST)
Support: $100 should serve as new support, further solidified by the 100 Week EMA around $90 and the 50 Week EMA not far below around $78. As these ascend towards the $100, that will only increase the fortitude of $100 as support and provide a strong area to bounce off of once this rally has run out of steam and retraces for a consolidation.
Resistance: In what seems like an EWT wave 3, XMR is targeting the $150 level, which was the 2018 summer highs and a major level of contention. After having already broken above the $100 level and July 2018 highs around $120, XMR looks positioned for its 15 minutes, as has a number of other altcoins recently (OMG, DOT, etc.). If it takes out $150, which in Crypto it is not out of the ordinary for tokens to see parabolic rallies over 1-2 days taking out multiple resistance levels before falling back, look for resistance around $180 and then probably major selling at $200. It's probably closer to $200 I would consider initiating a small short position, only to cover shortly thereafter during a retracement.
Outlook: As large-cap Cryptos such as Bitcoin and ETH move slower like aircraft carriers, more nimble medium cap assets like XMR can move with slightly more agility, receiving larger boosts in lieu of less overall volume and price sensitivity to BTC's recent positive price action. This recent breakout is very bullish obviously, as the most recent resistance level around $100 has been broken convincingly to the upside. This is probably a short term rally that will only last a few days at most before correcting, but that's not to say there isn't longer term value here with XMR. In the medium to longer term, I see XMR as a 'hedge within a hedge,' with a small allocation to diversify a crypto portfolio against BTC - which is the frontrunner, but by no means a 100% certainty (no asset or asset class is). I would be a buyer of XMR on a pullback after this rally fades, accumulating small amounts at key support levels for the same medium-long term basis. 'Alt season' as it is commonly known, the time shortly after BTC peaks in a bull market when altcoins tend to outperform BTC, is a time when altcoins will rally like fireworks, blasting off one after another, day in day out for a couple weeks. It is during this time that we would want to sell XMR. However, it is during accumulation phases like now (last week, or probably in a few weeks from now) that we want to add to our XMR stacks for those exuberant days
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