Monero (XMR) Technical Analysis: Two Bugs Found This Week But That’s Not Stopping Bullish Traders

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Monero has been under the spotlight twice this week with two separate reports of bugs being disclosed to developers.

On March 3 a redditor named ‘MoneroDontCheeseMe’ posted that they had just lost over $80,000 worth of XMR after attempting to move funds from the Monero App to their Ledger cold wallet.

Not long after, a Ledger developer issued a warning that a change address bug had been found on the new ‘Monero client 0.14 with application 1.1.3’, and urged readers not to use the client until developers had had a chance to patch the flaw.

On the same day another developer from official RYO posted a second vulnerability found in Monero on medium.  The post explained that an email had been sent out to Monero operators from Riccardo “Fluffy Pony” Spagni, warning them that ‘ a wallet bug related to coinbase transactions’ had been found. This issue was said to be ‘disruptive to anyone running a wallet on an exchange, payment gateway, or service’ and that a patch for the problem is expected to be delivered by March 6.

The RYO developer argued that his team had already discovered and fixed the problem several months ago, but Monero’s “long history of toxic behaviour towards security researchers” meant that the problem still existed on their network.

Despite these two recent security issues, the #13 cryptocurrency has surprisingly found enough support to break over the psychological $50 level in the last 24hrs and is looking promising to continue bullish. XMR is one of the best performing cryptocurrencies in the top 15 right now, with a 0.78% gain against the US dollar and 0.68% ahead of Bitcoin.

On the 1D XMR/USD chart we can see that the asset appears to be tracking in a bullish ascending triangle and adhering to key fibonacci levels for support (see green arrows).

The 0.786 fib level at $56.78 represents the main resistance for Monero to overcome, and already caused a bearish double top of January 7 after bullish traders failed to break through during the second test. Since then the price action has gone on to retest the same level unsuccessfully on February 24.

The 0.236 fib level at $43.23 and the 0.382 fib level at $46.82 have both been key levels of support over the last 2 months, and have allowed XMR to consistently make higher lows as it begins to travel back towards the key resistance above.

Right now the 0.5 fib level at $49.72 will most likely become a strong back up support should the asset fail to break through the 0.618 fib resistance above

Looking at a number of 1D indicators we can see an array of positive bullish signals that suggest XMR is likely to continue uptrending in the short-term.

  • The 12MA is now about to converge with the 26MA on the MACD indicator for the first time in over a month.
  • The 9 EMA line is starting to bullishly bifurcate away from the 20 EMA line as short-term buying momentum picks up.
  • The indicator line on the Chaikin Money Flow has spiked high through the zero line as buying pressure increases.
  • On the Ichimoku indicator candles are beginning to close above the resisting kumo which is a strong bullish reversal signal.
  • On the RSI, there has been a marked increase in momentum since December 2018 (see image below) with increasingly higher lows.

Monero (XMR) Price Targets

All ROIs are calculated from the asset’s current value at $51.18.

PT1: 0.618 fibonacci level, $52.64. (2.85%)
PT2: 0.786 fibonacci level, $56.78 (10.94%)

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