Monero undervalued against ETH and BTC: Accumulation time?Out of all the crypto currencies out there few things have a better use case than XMR. Unless you are some sort of bank robber all the fiat you spend is anonymous because you are not important enough to track serial numbers on. The $50 you got for a gift either in cash or a giftcard isn't tracked in some immutable ledger like bitcoin, it doesn't show up in you bank account, and you don't have to have people wondering why you bought certain things. Why did this guy buy rope all of a sudden? Why is he buying silver and gold? She bought cough syrup, is she really sick?
This anonymous value is inherent in paper money and the same value keeps XMR hovering around the 15th position on coinmarketcap as other coins of the moment have meteoric rises to the top 10 and then peter out. Any piece of garbage can go to zero and the bollinger bands would be meaningless. But with something with a real world use case like Monero when something is out of the month or weekly bollinger band it it time to either accumulate or watch for the recovery if you want to be a value investor.
This whole thing looks like a set up to a Wycoffian accumulation. So far we have a potential selling climax as well as an automatic reaction. From here value investors would be looking to slowly accumulate as to not pump the price too much and they will be buying the lower part of this formation. The chart below is the great dump bitcoin had in 2018. Price went below the weekly bollinger band and had a selling climax and automatic reaction( I haven't labeled every wycoffian event). One thing to notice is we didn't have a spring (or W pattern) on this time frame. On this chart there was one secondary test and that was it. Monero might have several secondary tests of the trading range and might even have a terminal shakeout. If you don't know what that means go here:https://school.stockcharts.com/doku.php?id=market_analysis:the_wyckoff_method or run the risk of staying poor.
Based on this I am looking to be a composite man. I will buy XMR when I see it against any of the bollinger bands on the chart below; Either ETH, BTC, or USD. Since I see eth beating btc over the course of the bull run I will use the ETH and USD charts more than I use the XMRBTC charts. There may or may not be a terminal shake out, I will just have to stick to the plan and accumulate.
If history is any indicator when accumulation is done Monero will pump with a fury against both BTC and USD. The chart below shows the accumulation and when it broke resistance there was a massive one day gain in Monero. This chart also shows that Monero is testing previous resistance as support for XMRBTC. Last time it took a year for accumulation to occur for XMRBTC. This isn't a post for traders, this is a post for investors and people with the discipline to act like the composite man.
