We need to see Bitcoin rally a bit in order to make a recovery in Monero possible.
The Monero market fell ever so slightly on Tuesday as we have started to see signs of life yet again. It looks like the selling has abated, and now we are more than likely going to see the market close somewhat unchanged. We are sitting just below the $150 level, an area that would attract a certain amount of attention anyway, so if we break back above that we could make a move towards the next resistance barrier.
The next resistance barrier that I see is the $180 level, an area that has been supportive more than once in the recent past. The market reaching towards the $180 level makes a certain amount of sense, due to the fact that short-sellers are probably a bit concerned about the possibility of the FOMC sounding more dovish than originally thought. That leads to a little bit of short covering. Whether or not that continues will more than likely have more to do with Jerome Powell than anything else, and as a result it is going to be difficult to trade from a short-term perspective.
However, you are better off hanging onto crypto than trying to trade from a short-term perspective. Because of this, you need to be very cautious about the amount that you buy, as the market could move against you rather quickly. I believe in buying little bits and pieces until we get a bit of confirmation as to where we are going. At that point, I would not hesitate to build the position a little bit more aggressively. I understand that crypto tends to be very noisy and Monero will be a little bit more volatile than some of the big markets.
Speaking of the big markets, we need to see Bitcoin rally a bit in order to make a recovery in Monero possible. This is not to say that it will be easy, but at this point I do think that the market is getting closer to the bottom as the selloff has been so horrific. Another cue as to where the market may go is to follow the NASDAQ. Technology on the whole tends to move in the same general direction, be it crypto or Tesla. Over the longer term that correlation seems to hold.
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