If you see the bigger markets pick up, then Monero might be a nice way to pick up a bit of momentum in the crypto markets.
Monero pulled back on Wednesday to test the 200-day EMA yet again, which sits at the $210 level. That is an area that the market has respected previously, so it is worth noting that we have handled that area as an area that is important. The 50-day EMA is starting to rally from here and reach towards the upside, perhaps offering a potential “golden cross” in the future.
Monero is a market that continues to see upward pressure overall, but the last couple of weeks have been more sideways than anything else, after a huge push higher. That can be said for crypto in general, but with Bitcoin falling at this point, it suggests that perhaps we are running out of momentum, and therefore we need to pay special attention to the 200-day EMA in Monero to see whether or not we are ready to continue going higher, or if we need to pull back and test the 50-day EMA.
Looking at the Monero market, you can see that we have formed a massive bottoming pattern and may have even hit the potential “measured move” of the W pattern underneath. I think at this point a pullback does not necessarily mean that bad things have to happen next, just that we may be able to find value at lower levels. It is also worth noting that the W pattern in the Monero market looks very similar to the Bitcoin market, so I think at this point time you can probably superimpose one chart over another.
If the market was to break above the $230 level, then it is likely that the Monero markets will go looking to the $250 level next. We have obviously been very bullish, and are likely to see consolidation, statistically speaking. However, there are a lot of crosswinds out there that could come into the picture, not the least of which would be risk appetite. Remember that Monero is far out on the risk spectrum, as money tends to flow to the bigger crypto markets first, such as Bitcoin and Ethereum. If you see the bigger markets pick up, then Monero might be a nice way to pick up a bit of momentum in the crypto markets.