Hi friends! Let's take a look at Monero! As many of you know, Weiss Ratings (a U.S. based securities rating agency) released the first ever industry recognized cryptocurrency rating. The release allegedly triggered a failed cyber attack, in which Korean hackers attempted to sabotage the reporting. Additionally, the release drew stark fire from cryptocurrency experts, who harshly criticized the details of the report, as well as the grading methods used on the tokens. With regards to Monero, global cryptologists openly chastised it's 'C' rating, and the fact that Weiss had compared it to Verge.
Looking at the four hour chart, we can see that XMR is in a bear flag (blue flag) consolidation pattern, after plummeting through moderate support at the 38.2% retrace. XMR has made a few attempts to get back above the 382, but each has been unsuccessful. I don't want to read too much into the bear flag, because there have been several instances where XMR has created bear flags that broke to the upside. Instead, I just want to know that it's there, and see what it does. A break lower will confirm it as a bear flag. We can see that the flag is starting to reach the bottom of the 38.2% retrace. If XMR breaks above that level, it will immediately run into resistance at the 50 EMA and the 200 EMA. Given the fact that it is a bear flag, and there is substantial overhead resistance, I think there is a higher probability of a downside break, than one leading to the upside. However, there has been a bullish crossover on the MACD (green circle,) so a shift in underlying momentum has taken place. Ultimately, we need to watch this flag, to see where we go next. If the flag breaks down, initial support should be found at the dotted red trendline, and then the bottom of the pink downtrend channel. A break to the upside, will need to launch XMR above the 200 EMA (in purple,) before a low resistance zone opens up. XMR is slamming into the bottom of the 382 at the moment, so we will have to watch price action very closely here. Monero has been highly volatile lately, and the volatility is likely to continue. So be safe, traders, and watch those key levels.
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-
Looking at the four hour chart, we can see that XMR is in a bear flag (blue flag) consolidation pattern, after plummeting through moderate support at the 38.2% retrace. XMR has made a few attempts to get back above the 382, but each has been unsuccessful. I don't want to read too much into the bear flag, because there have been several instances where XMR has created bear flags that broke to the upside. Instead, I just want to know that it's there, and see what it does. A break lower will confirm it as a bear flag. We can see that the flag is starting to reach the bottom of the 38.2% retrace. If XMR breaks above that level, it will immediately run into resistance at the 50 EMA and the 200 EMA. Given the fact that it is a bear flag, and there is substantial overhead resistance, I think there is a higher probability of a downside break, than one leading to the upside. However, there has been a bullish crossover on the MACD (green circle,) so a shift in underlying momentum has taken place. Ultimately, we need to watch this flag, to see where we go next. If the flag breaks down, initial support should be found at the dotted red trendline, and then the bottom of the pink downtrend channel. A break to the upside, will need to launch XMR above the 200 EMA (in purple,) before a low resistance zone opens up. XMR is slamming into the bottom of the 382 at the moment, so we will have to watch price action very closely here. Monero has been highly volatile lately, and the volatility is likely to continue. So be safe, traders, and watch those key levels.
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-