Tanya Abrosimova
Independent Analyst
- Monero reverses recent gains amid technical correction.
- Pivot to privacy may have lent support to XMR.
- Evening Star may signal a reversal towards $50.00.
Monero (XMR) bulls hit a brick wall on the approach to $60.00. The coin topped at $60.12 during early Asian hours and reversed to $57.78 by press time. Despite 1.4% decline on Wednesday, Monero is the best-performing altcoin on the week-on-week basis: XMR/USD value increased by over 27% in recent seven days.
Monero's market capitalization surpassed $1 billion threshold, and the coin made its way to the top-ten altcoins my market value, passing Stellar (XLM), Cardano (ADA) and Tezos (XTZ).
Pivot to privacy
While regulators and politicians are wary about privacy coins, the crytocurrency industry seems to have another point of view on the matter. Thus, several prominent figures of the crypto community, including John MacAfee and Coinbase's CEO, Brian Armstrong recently agured that anonumity-focused coins would make thheir way to the mainstream as they serve the basic needs of privacy.
Brian Armstrong, the head of the US-based cryptocurrency exchange Coinbase, wrote in hist 2020s predictions:
"I believe we’ll eventually see a “privacy coin” or blockchain with built in privacy features get mainstream adoption in the 2020s."
XMR/USD: technical picture
XMR/USD has created a double-top formation on the 4-hour chart with the neckline on approach to $55.00. From the short-term point of view, this area is critical for Monero's further momentum as it is reinforced by SMA100 (Simple Moving Average) daily. A sustainable move below will signal that thee downside correction is gaining force with the next focus at the key support at $51.00. This barrier is created by the lower line of 4-hour Bollinger Band and SMA50 daily and it separates us from psychological $50.00.
The daily RSI (Relative Strength Index) has slowed down on approach to an overbought territory. The indicator signals that the downside correction is on the way. An Evening Star candlestick formation on a daily chart also implies that the coin may be ready to start a trip to the South.
On the upside, a strong move above $60.00 is needed to allow for an extended recovery with the next aim at $67.00, which is the highest level since the beginning of November 2019, and $68.70 (SMA200 daily). The last time XMR traded above SMA200 daily in September 2019.
XMR/USD daily chart
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Why crypto may see a recovery right before or shortly after Bitcoin halving
Cryptocurrency market is bleeding, with Bitcoin price leading altcoins south in a broader market crash. The elevated risk levels have bulls sitting on their hands, but analysts from Santiment say this bleed may only be cauterized right before or shortly after the halving.
Manta Network price braces for volatility as $44 million worth of MANTA is due to flood markets
Manta Network (MANTA) price was not spared from the broader market crash instigated by a weakness in the Bitcoin (BTC) market. While analysts call a bottoming out in the BTC price, the Web3 modular ecosystem token could suffer further impact.
Bitcoin price uptrend to continue post-halving, Bernstein report says as traders remain in disarray
Bitcoin is dropping amid elevated risk levels in the market. It comes as traders count hours to the much-anticipated halving event. Amid the market lull, experts say we may not see a rally until after the halving.
OMNI post nearly 50% loss after airdrop and exchange listing
Omni network (OMNI) lost nearly 50% of its value on Wednesday after investors dumped the token following its listing on top crypto exchanges. A potential reason for the crash may be due to the wider crypto market slump.
Bitcoin: BTC’s rangebound movement leaves traders confused
Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established.