Monero has been one of the bright spots in the crypto markets during the trading session on Thursday, as we have seen the market gained roughly 10%, as we are now above the 50 day EMA. Monero has recently formed a bit of a “double bottom” at the $180 level, so at this point in time it should not be a huge surprise to see this bounce. The $180 level has been important more than once, so it does make quite a bit of sense that we will continue to see this as an opportunity to get long of this market.
All that being said, the $250 level above is a significant resistance barrier that we need to pay close attention to. If we cannot get above there, then we may just simply be forming some type of consolidation region, and therefore we need to see whether or not we can break out above that area to hold onto Monero until the next resistance barrier in the form of $300. However, if we do pull back rather soon, then I think we will just continue to bounce around between the $225 level on the top and the $180 level on the bottom. That would not necessarily be too far out of bounds, because this is a market that has seen a lot of volatility right along with the rest of crypto currencies, so you also have to pay close attention to other ones such as Bitcoin. Remember, Bitcoin does drive where markets go in general, so you need to pay close attention to it to get an idea as to where some of these smaller currencies such as Monero is concerned.
We did recently formed the so-called “death cross”, but quite frankly I do not care about that due to the fact that it is quite often a late signal. Furthermore, the $180 level has been so important for such a long time, that it makes quite a bit of sense that we would just simply continue to drift back and forth in what has been the longer-term consolidation and therefore I think the $250 level, possibly even the $300 level makes the most amount of sense. The only other thing I can think of that you can basically count on is the idea of choppy and volatile trading.
