Monero Weekly Chart – Source: TradingView.com

A look at the weekly chart of Monero (XMR), shows that we broke the $75 level of support which had been holding since the beginning of the summer and is now heading lower. The two support areas to watch are the $25-30 area formed by the lows of July 2017 (less likely to hold), and the $10-15 area formed by the highs of 2016 (more likely to hold).

A look at the 3-day chart paints a similar bearish picture. The RSI is at 23, a level not seen previously, however, there is no divergence visible yet. Price is below all moving averages (9, 21 50 and 200 periods), and it rejected a 9-21 period bullish cross (yellow arrow) in late November. Thus, the long-term view supports the scenario in which we fall to one of the two support areas outlined previously.

A look at the Daily chart shows a more positive outlook. While the price has been falling, the RSI and Chaikin Oscillator have started developing a bullish divergence. If a bounce occurs, we should take profit at the $77-$86 area, formed by previous support and the 0.618 Fibonacci level.

A look at the 6hr chart gives us an even more positive outlook. There is huge bullish divergence developing on the RSI and MACD, and the MACD rejected a bearish cross and is now seemingly heading upward, trying to break 0. However, the price is facing resistance from the 9-21 period moving averages and the cloud. If price were to bounce and break the cloud, the taking profit area laid out in the previous section would correspond with our 200-period MA.

Monero [XMR]: Is a Bounce in Store or Are We Heading for the Bottom? was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

206 +