Once we break out of this area, we will see a bigger move.
Monero has had a bullish session on Thursday to break above the $200 level. Furthermore, it looks as if it is reaching towards the 200 Day EMA, an indicator that of course is rather crucial. The downslope of the 200 Day EMA continues to be a deterrent for buyers, but we are getting rather close to this area and if we were to break above it, then things would change rather rapidly.
Monero of course will be following some of the bigger currencies such as Bitcoin and Ethereum, as they lead the rest of the smaller coins. Because of this, you need to keep an eye on both of those, because if they are rallying, Monero has a chance. Keep in mind that the smaller coins do tend to be a bit more volatile, so given enough time it is likely that we will see a bigger move. It is worth noting that the candlestick on Thursday was bigger than several of the ones before, so with that in mind, it does bode well.
On the downside, the 50 Day EMA sits just above the $180 level, which is a support region. Ultimately, this is a market that should see plenty of buyers in that region, and therefore I would anticipate a bounce from that area. However, if we were to break down below the $180 level, it is likely that the market could drop towards the $150 level underneath. The market currently sits between the two major moving averages, which typically means you are in the midst of some type of squeeze. Once we break out of this area, we will see a bigger move.
Market participants continue to look at crypto as being cheap, and therefore I think more money is starting to flow into this area. Furthermore, you can see that we had recently formed a bit of a double bottom, and therefore it is possible that this is a bigger reversal. The upside could see the market looking towards the $250 level above, which is an area that had been resistance multiple times. This is a target, but we need to get through the crucial and stubborn 200 Day EMA first. On a daily close above that level, I will start buying Monero for a longer-term move. Until then, it is bound to be rather choppy.
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