Monero is another currency in crypto space which has been going in correction phase since it registered a high of $61.68 on 07/06/2017. As this is my first update on Monero, lets take a brief overview of it first.....
Monero [XMR] is a brand new uprising cryptocurrency which originates from Bitmonero.Being the fork of Bytecoin, Monero (XMR) is an anonymous and decentralized cryptocurrency with CryptoNight (64-bit CPU-only) PoW hash algorithm and based on CryptoNote protocol. For further info please click http://monero.org/
Now, In order to move further with analysis, lets take a quick look on chart below.......
On chart above, i want you to take note on following points:-
- Breakouts: According to chart above, Monero started its journey at $12.41 on 22/02/2017. then it had three breakouts in run to hit a high of $61.68 on 07/06/2017 and these breakout levels are pointed out with blue arrows.
- Red Horizontal Lines: These are supporting levels for falling Monero Prices, which are shown in Red color lines and before turned out as Supports, one can easily observe on chart above that these were in fact prior resistances which were at level of $15.91 marked as Support3, then at level $22.97 marked as Support 2 and last is at $35.91 level, marked as Support 1.
- Green Horizontal Line: This line on chart above is signifying a strong resistance to rising prices of Monero which is at $58.61 and one can easily observe on chart above that Monero has attempted multiple time to breach this resistance but each-time it failed to do so and eventually fell which lead to its correction.
- Falling Channel: The area shown in highlighted blue color in between two diagonal lines is known as Falling Channel. It signify the downtrend in prices of Monero, which are falling in lower highs and lower lows pattern hence forming Falling Channel Pattern.
- 10 Days EMA: This moving average is shown in yellow wavy line on chart above and is currently at $42.02 and monero prices has been trading below this moving average for many days cementing weakness in this script.
- 50 Days EMA: This is another moving average in chart above which was strong support and has been broken two days back. Red Wavy Line on chart above is showing movement of this moving average which is at $43.65 and trading below this moving average has turned things more bearish for this script.
Now the conclusion
In conclusion, I am inclined to say that Monero is still very bearish and new sell position can be initated in this script tomorrow, it closes below 50 Days EMA again today. Next support or target of that sell is going to be $35 level, which is in fact supported by Rising trendline(Blue color diagonal Line) and horizontal line i.e Support 1. Further, if this support is broken again then hell going to be fall on Monero and there will be complete bloodbath in this script.
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