Monero Sitting Just Below Major Resistance

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You cannot have Monero going higher for any sustained amount of time without the big coins doing the same thing.

Monero has rallied a bit during the trading session on Wednesday as we are dancing around the $190 level. The 50 Day EMA sits underneath and is offering a bit of dynamic support, but at the same time, we have the 200 Day EMA above at the $210 level offering resistance. In other words, we are currently being squeezed between these two major indicators.

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If we do break down below the $170 level, then it is very likely that Monero goes looking towards the $150 level. That is an area that I believe has quite a bit of noise attached to it and support due to the fact that we had bounced from there a couple of times. The market breaking down below there could open up the “trapdoor” to much lower pricing. It will be interesting to see how this plays out, but I believe you need to pay close attention to Bitcoin as it leads the way for all other coins.

The market breaking above the 200 Day EMA opens up the possibility of the market going to the $250 level. That is an area where we have seen resistance previously, so it does make a nice target. That being said, it does not look like we are ready to do that, so it will be interesting to see whether or not that move could actually happen. Monero is struggling from a lack of use at this point because crypto seems as if it is going to continue to struggle overall due to tightening monetary policy and this of course puts a lot of stress on the smaller markets. You cannot have Monero going higher for any sustained amount of time without the big coins doing the same thing.

If we were to break down below the $150 support region, then I think you could be looking at a move all the way back down to the $125 level, followed by the $100 level. While this market does look like it is trying to form some type of basing pattern, if we are in fact getting ready to go into a “crypto winter”, as some people are suggesting, Monero is going to be a place that people start dumping and therefore you will see prices dropping quite drastically.

Monero Chart

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