Monero (XMR) Technical Analysis: Fortnite Merchandise Can Now Be Bought Exclusively With XMR
Monero has started 2019 with a bang. Fortnite, currently the world’s most played game with over 200 million online players, has added Monero as an exclusive cryptocurrency payment option for its online merchandise store. This new feature now allows Fortnite customers to purchase goods anonymously using Monero’s private cryptocurrency, XMR, instead of using fiat currencies.
The breaking news was not officially announced by Epic Games, the creators of Fortnite, but instead was made publicly known by a Redditor on January 1 who noticed the new payment option had been added. Since the post went live yesterday, the Fortnite XMR news has gone viral, helping to drive XMR up 3.12% against BTC and 5.11% against USD. Right now Monero is the second-best performing asset among the top 15 cryptos, behind Ethereum, which is now back as the #2 most popular cryptocurrency by market capital.
Will this breaking news help drive Monero back over $50 and towards the top 10 cryptos? Let’s see what the chart says.
On the 1D XMR/BTC chart, we can see that Monero was tracking inside a descending channel pattern throughout November and into mid-December. After hitting the bottom support at 0.0117BTC on December 15, bullish traders began to re-enter the market and helped XMR breakout of the pattern with a 20% gain over nine days.
From there, the asset unsuccessfully tested the 0.382 Fibonacci resistance at 0.0140BTC and threw back on to the previous downtrending resistance of the channel pattern, where it found new support. Upon establishing this foothold, bullish traders were able to regain composure and take back control of the asset.
Looking at the price action right now, we can see that the asset is starting to make an upside recovery towards the 0.236 Fibonacci level at 0.0131BTC, as the market starts to respond to the recent breaking news.
Although 1D momentum indicators appear to be favoring a continuation - particularly the RSI, MACD and CMF - there appears to be a discrepancy with a number of trend reversal indicators which seem to favor a bear trend.
-On the 1D Ichimoku indicator, we have the start of a bearish T/K crossover and a strong resisting kumo cloud hanging high above the price action. Ideally, we would like to see candles climbing towards this cloud with a bullish T/K convergence, but for now, there doesn’t seem to be enough bullish momentum behind XMR to trigger these changes.
-The Parabolic SAR is also favoring a bearish continuation with signal dots still appearing above the price action.
-The Aroon Up line has also bearishly crossed below the Aroon Down line, which is indicative of a bear market.
From this, it appears that while bullish momentum is increasing, it isn’t increasing enough to overthrow the bearish control over the current XMR market. From these signals, we can assume that Monero needs to find more intraday support and break above the 0.236 fib level before these opposing indicators give us stronger buying signals. If/when this is achieved, then candles should also start to close in on the 1D resisting kumo cloud and give bullish traders more confidence.
Monero (XMR) Price Targets
All ROIs are set from the asset’s current value at 0.0128BTC.
PT1: 0.236 fib level/ 0.01313825BTC (2.64% ROI)
PT2: 0.382 fib level/ 0.01400931BTC (9.45% ROI)
PT3: 0.5 fib level/ 0.01471332BTC (14.95% ROI)