XMR/USD Back to Triangle Bottom » BitcoinerX

Monero is trading lower on its 4-hour time frame to indicate that bearish momentum is in play. The price has yet to break below support at the mid-channel area of interest to confirm that sellers are still in control.

In that case, Monero might make its way further south to the channel bottom at the 56.00 level or at least until the latest swing low at 60.00. The 100 SMA is still below the longer-term 200 SMA to indicate that the path of least resistance is to the downside or that the selloff is more likely to gain traction than to reverse. However, the gap between the indicators has narrowed enough to signal slowing bearish momentum and a potential bullish crossover.

RSI is heading south to show that sellers have the upper hand, but the oscillator is already dipping into the oversold region to signal exhaustion. Stochastic is pulling up to indicate that buyers are starting to take over and could push price back up to the channel top around 75.00.

XMR/USD Chart – TradingView

A double top pattern can also be seen at the short-term time frames, and a break below the mid-channel area of interest would also mean a break below the neckline support. This could set off a slide that’s at least the same height as the chart formation.

Other than that, there seem to be no other major catalysts specific to Monero or cryptocurrencies these days. Overall market sentiment has improved, which probably explains the dips in digital assets, while the lack of volatility has also been discouraging for most.

Also, the launch of Bakkt bitcoin futures seems to be bringing some anxiety to the mix as traders seem wary of another crash across the board, similar to what occurred after the launch of CME and CBOE futures.

Images courtesy of TradingView

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