- $70 level offering massive support
- signs of a bounce during early Wednesday session
- previous support just below
- crypto starting to wake up again
Monero drifted a little bit lower during the early hours on Wednesday to reach down towards the $70 level. However, this time the market didn’t slice right through that level, but rather bounced again. At this juncture, it looks as if the market is trying to turn things around at what has previously been a very crucial level. This is an area that has offered support more than once. In fact, it has even done so rather recently.
Technical analysis of Monero
Monero is essentially a market that is trying to find a bottom. The $70 level has been massive support that extends down to roughly $65, and although it has been falling for some time, it is worth noting that we have done a complete return from the initial surge higher. Quite often, there should be a significant amount of support at these levels, so the fact that we have bounced is not a huge surprise.
That being said, there is a significant turnaround at this point, and it looks as if the market has a lot of work to do to start rallying over the longer term. The $80 level above features a couple of shooting stars, and of course the 50-day EMA. All of that will be a massive wall of resistance. However, if the market was to break above that level, it would be extraordinarily bullish, sending fresh money into the market.
In that scenario, traders can look for confirmation in the Bitcoin market, as it drives crypto in general. If Bitcoin is falling, it is very unlikely that Monero will rally. After all, a huge portion of crypto trading is done in Bitcoin. So, much like the stock market, traders will need to see the leaders acting in the right manner.
Trading Monero going forward
Trading Monero going forward is going to be about trying to find whether the buyers can make a stand between the $70 level and the $65 level underneath. Momentum will enter the fray if the market can break above the $80 level, which should send this market much higher based on a resistance level being broken. At that point, it’s likely that the market will go looking towards the next resistance barrier in the form of the $90 level, followed by the $100 level.
The alternate scenario is that the market breaks below the $65 level, looking towards $60 underneath and then eventually $50. This is a major, psychologically important level, so traders will have to re-evaluate the entire situation. All things being equal, it does appear that the buyers are trying to make a stand here, so the next couple of days should be crucial to determine where Monero goes next. With the various levels around current trading, the intention of the market should show itself rather quickly.