Monero has been one of the more volatile and also profitable markets to trade, lets jump in and have a look.
I zoomed out to the 1 day candles chart to get a better idea of the possible bottom forming on the Monero market. As we can see the $160 price zone has come into play 3 times since the start of the year, it is now testing it the 3rd time.
The market is clearly in a bearish trend and most long trades should be considered higher risk in nature, with that said if $160 plays as support for a 3rd time it is very possible that we will see a reversal here.
I am keeping this opinion in my mind, but I would also like to clarify that I believe Monero will most likely follow Bitcoin, which is at the moment also quite bearish. One of the most dangerous occupations for traders is to try and pick bottoms.
The safer option would be to wait for market to consolidate above the bearish trend line before considering going long. On the shorter timeframes we can see a bit of buying momentum coming into the market, however I would advise most traders to be patient and let the market show you the way.
Lets take a quick look at Monero versus Bitcoin.
A quick look at the 1 Day candles and we are reminded that Monero IS one of the most volatile crypto’s and not for those with weak stomachs. This chart confirms the bearish momentum of the Monero market as well as the possible support zone on the shorter term.
We can see that there is serious selling price action between, 0.025 btc – 0.035 btc, this is confirmed by the indicators and the fact that we saw sellers step in more than 3 times in this area. With that said there has also been some decent buying action, but the volume is very low and I would expect lower prices before we will witness a reversal.
Support for this play can be as low as 0.018 btc, however I would keep an eye on the price action before jumping into the market.