Monero Continues Steady Downtrend
- Monero continues to struggle right along with the rest of the crypto markets
- Downtrend line continues
- Major moving averages sloping lower
Monero is considered to be a “second-tier” crypto market. Because of this, it needs larger markets out there to help lift it going forward. Think of it this way, it is much like the currency markets, where you have major players such as the EUR/USD pair, the GBP/USD pair, and the USD/JPY pair. If you are going to trade the Euro, British pound, or Japanese yen, you need to know how it is doing in the biggest markets, meaning against the US dollar.
In other words, if you wish to make any money whatsoever in these currencies you need to decide whether or not they are strong in general. The same thing can be said for cryptocurrencies, they tend to follow Bitcoin and to a lesser extent Ethereum.
That being said, it has been very difficult for crypto over the last several months, as Bitcoin has gotten absolutely hammered, and of course Ethereum hasn’t done much better. In that scenario it’s difficult to imagine some of the “second-tier” currency such as Monero and Ripple. Unless there is a specific fundamental reasoning, these markets will simply follow right along with the big players. Currently, Monero has been struggling over the same timeframe.
Technical analysis
Monero chart
The Monero market continues to struggle with a major downtrend line that is currently squashing any type of growth. The trend line is currently slicing through the $50 level, which of course has its own importance due to it being a large, round, psychologically significant figure. With this, one would expect a lot of selling pressure in that area. Furthermore, the 50 day EMA is sloping lower, hugging the top of this downtrend line. The 200 day EMA is sloping lower and spreading out from the 50 day EMA. All things being equal, it looks as if the longer-term traders will continue to push this market lower.
All things being equal, there’s nothing to keep the market going lower, but if the market was to break above the 50 day EMA then you would have to start thinking about the idea of a trend change. However, you would first need to see Bitcoin start to rally, because it would then start to pick up the rest of the markets.
Going forward
Cryptocurrency markets are in serious trouble. Currently, there is no real catalyst to go higher so fading rallies will continue to be what most people are looking to do in this market. Until we get at least a daily close above the 50 day EMA, it’s hard to imagine the technicians will be excited about this market. That being said, crypto markets do tend to change direction rather quickly.