We turn our attentions back to Monero, but this time we'll be examining its price action in relation to bitcoin.

Comparing the price action from its inception until around mid-July 2016, with the price action from roughly 2020 til now, we can see a similar pattern taking shape. From the serpentine and generally horizontal direction of these patterns, we can identify these as consolidation ranges.

The second detail we'll focus attention on are the green descending trend lines. The first one from June 2014 to June 2016, the second one from March 2018 to January 2023. The 'end' date is subjective since the trends became invalidated the moment price action deviated above the trend line. We chose those dates because those are when the trend lines intersected the trend line derived by connecting the secondary troughs of the consolidation patterns.

But I digress, what is important about these trend lines is the fact that they have been invalidated. As we can see from the price action following the initial breakout of the first line, this led to extremely bullish price action following a somewhat deep correction. There was a similar breakout from the second trend line, and like before, a significant correction followed.

This is where the third focal point comes in. While this is admittedly more visible in a finer detailed view, we can connect the upper wicks in these corrections and form descending channels. We know that the descending channel from the first 'breakout correction' broke to the upside after consolidating sideways and forming a trough. This breakout led to a pump somewhere in the neighborhood of 500%. The second descending channel is still intact, however what is interesting is the similarity in the shape forming to the first trough. If it continues to consolidate in its current trajectory, a similar breakout seems likely.

I also want to call attention to the RSI chart. As we can see, over the past few months the index has been itself forming its own trough after scraping the range lows. This indicates increasing strength, as the name of the indicator suggests (Relative Strength Index), and while on its own should not be relied on for timing an entry, in conjunction with price action and other indicators, can be a meaningful tool. The next checkpoint to look for here would be for the index to start to overtake and hold the RSI moving average as support. Their trajectories suggest we'll find out soon enough.

The last point I want to call attention to are the horizontal rays colored in magenta. These are not meaningful by themselves in any way. What I find interesting are how they are essentially parallels based on price action derived from the consolidation ranges we mentioned initially. The top line is connected to the top wick from the first trough, and the bottom line is connected to the top of the wick from the initial pump out of the second trough. It is between these lines where the consolidation range that setup the bullish breakout of the first pattern took place, and funny enough, it's where the current sideways consolidation is taking place.