Ultimately, all things come back to Bitcoin, as it drives the rest of the crypto markets in general.
Monero was relatively quiet on Tuesday as we continue to look at the $150 level as a little bit of resistance. But I think what we have here in Monero is the same thing that we have going on in other crypto markets. The crypto markets have been beaten down rather significantly as of late, as people are concerned about the Federal Reserve tightening monetary policy. In other words, as liquidity goes, risk assets get hammered. Furthermore, when you are talking about smaller markets, they are especially sensitive to these types of moves, especially as the US dollar strengthens. Remember, you are currently trading Monero against the US dollar, so it does make sense that you need to pay attention to the relative strength of both.
Ultimately, all things come back to Bitcoin, as it drives the rest of the crypto markets in general. To a lesser extent, you could say the same thing about Ethereum, as they are both the biggest markets in the crypto sphere by a wide margin. If Bitcoin starts to rally significantly, then money will flow out into riskier assets such as Monero, perhaps breaking above the little bit of resistance that we have seen this past week. If we do, then it is very likely that Monero will go looking towards the $180 level, an area that previously had been support in the past. “Market memory” does continue to come into the picture, and I think if we do get a little bit of a bounce, it is very likely that the market will struggle in that area.
To the downside, if we break down below the lows of the past couple of weeks, then it opens up the possibility of a move towards the $125 level, and then eventually the $100 level as it is a large, round, psychologically significant figure. That is an area that would cause a lot of headlines, and would end up putting a certain amount of buying into that area. Anything below the $100 level would almost certainly be a situation in which we would have entered “crypto winter”, which you would see in multiple other currencies, even the big ones such as Bitcoin and Ethereum. Obviously, a “crypto winter” would be the last thing you want to see for this alt coin.
Source link
