The Monster of Volatility! Monero! (XMR)

Hi friends! Let's take a look at Monero! Looking at the four hour chart, we can see that XMR is trapped inside of a massive slightly falling parallel channel (pink trendlines.) Immediately, we can see how extreme the volatility has been, as XMR has repeatedly endured over 60% price swings. Presently, we can see that Monero is turning lower, after running into a reactionary level (black dotted trendline.) Just below, is the 50 EMA (in orange,) which has been a hit-or-miss support/resistance level since XMR has been in this channel. Below that, the 200 EMA (in purple) could provide some initial support. Looking at the MACD, you can see how tall and narrow the movement is, which reflects the extreme volatility. Speaking of the MACD, I'd like to draw your attention to the correlation between the MACD peaks, and the high points circled in orange on the chart. I've noticed that each of these most recent peaks, have had long wicks on the top of the candles, and they have also corresponded to peaks in the MACD. As you can see, XMR has just produced a similar peak, and the MACD appears to be rolling over to the downside. As it stands, this appears to be a repetitive pattern, which should repeat itself again by producing more downside. Based on past history, the upside appears limited, and would likely be capped at the upper pink trendline. On the downside, if the 50 EMA and the 200 EMA fall, the 38.2% retrace (blue trendline) would likely offer some support. However, there is a much further fall, to the bottom of the channel, than a rise to the top. Expect the volatility to remain strong, as XMR continues to whipsaw through this channel.

This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!

***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***

-MPC loves you-

-JD-

Comment:

Update: Monero is already below the 200 EMA (in purple.) This analysis was spot on! I'll keep you posted as the chart develops. This analysis is still valid.