Last week, Monero (XMR) price rose by 9.33%, which further extended to 19% on Monday. On-chain indicators show a bullish trend, with open interest reaching a new high since December 20, and the technical outlook points to $345. XMR formed an ascending triangle, and the technical breakout favored the bulls, while the daily relative strength index (RSI) read 83, and the overbought level made it possible to face a pullback pressure in the future. Traders recommend taking profits at the $300 level, and the increase in open interest indicates that new funds are pouring into the market, supporting the price climb.
Monero Price extended its gains on Monday after rallying 9.33% last week.
On-chain metrics paint a bullish picture, with open interest reaching its highest level since December 20.
The technical outlook suggests a continuation of the rally at $345.
The price of Monero (XMR) is up 19% at the time of writing on Monday, following a 9.33% rally last week. On-chain indicators support this price gain, with XMR open interest reaching its highest level since December 20. The technical outlook suggests a counter-breakout and continuation of the rally, with a target of $345.
Monero could surge higher above ascending triangle formation
The price of Monero has surpassed an ascending triangle formation on the daily chart, gaining more than 19% at the time of writing on Monday. This pattern was created by drawing two trend lines from mid-November that connect the swing points on the daily chart between multiple higher lows and multiple equal highs.
Breakouts of this technical pattern favor bulls and the target is usually obtained by measuring the distance between the first daily high and the first daily low to the breakout point.
If the redistribution level is retested and finds support at the daily level of $241.95, XMR could rally towards its technical target price of $345.23. However, traders are advised to book profits at the $300 level.
The relative strength index (RSI) momentum indicator on the daily chart reads at 83, above its overbought 70 level, which suggests that the ongoing rally may face cooling pressure. However, bullish momentum remains strong.
XMR/USDT daily chart
Monero’s open interest reaches its highest to date
Further supporting the bullish outlook is Monero’s open interest (OI). Coinglass data shows that futures OI in XMR on exchanges rose from $20.13 million on Friday to $30.38 million on Monday, reaching a new year-to-date (YTD) high. Increasing OI represents new or additional money entering the market and new purchases, which indicates a rally in Monero prices.
XMR open interest graph. Source: Xiaodian
