Keep in mind that Bitcoin is the leader of crypto, so we need to see the Bitcoin markets stabilize before smaller crypto markets like this one can rally with any type of strength or solidity.
Monero fell apart on Tuesday right along with the rest of the crypto world. Crypto cannot seem to find its footing, especially as the US dollar has been strengthening so much. That being said, this is a market that I think given enough time will have to find support near the $180 level in order to keep up the overall consolidation-type behavior that we have seen.
Keep in mind that Bitcoin is the leader of crypto, so we need to see the Bitcoin markets stabilize before smaller crypto markets like this one can rally with any type of strength or solidity. At this point, the $180 level will almost certainly be tested again, as it has been significant support more than once. Nonetheless, I think that this is a situation where we will continue to see plenty of selling pressure, but there could be quite a bit of value down in that area if we get a little bit of help from external forces. This is a market that I do believe eventually will find its way back towards the 200 day EMA, especially as the $180 level has been not only a support level, but a support “region” that extends down to the $155 level or so. Because of this, traders will have to look to see whether or not we get some type of supportive daily candlestick and help from Bitcoin and Ethereum.
To the upside, the 200 day EMA currently sits at the $233 level, which is an area that has been important more than once over the last month or so. Breaking above there opens up the possibility of a move towards the $250 level, but right now I do not see that being very likely. It is not that it is impossible, it is just that we would need to see a significant change in attitude at this point to make something like that happen. Keep in mind that crypto quite often moves based upon momentum, and momentum is something that you have to pay close attention to. Momentum is a very fickle thing, so it would be interesting to see whether or not we will continue to see that play out, or if value hunters will come back.
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