Monero continue to grind sideways around the $86 handle during the Wednesday session. It looks as if we are in an area of possible accumulation, meaning that the market is trying to build a base from which to bounce. The $85 level underneath makes a lot of sense, because historically it has mattered in the past, and of course it is a round number. Ultimately, I believe that each of the short-term pullbacks are simply opportunities to add to your position, allowing you to become even more aggressive once we break above the vital $90 handle. Between now and then, the first sign of strength will probably be a break above the $88 level, which has been somewhat resistive over the last 2 days.
Consolidation or accumulation?
Ultimately, it all comes down to following Bitcoin. The Bitcoin can rally significantly, that will drag the rest of the crypto currency space higher, including Monero. Overall, it looks like we are in sideways consolidation when it comes to most crypto currencies, so it makes sense that Monero would just do the same. I believe that given enough time we are going to see buyers come in and lift this market, so I don’t have any interest in shorting. If we did breakdown below the $84 level, that would be somewhat bearish, but at the end of the day I still think that there is plenty of support below there also. Given enough time, I think that the markets are going to go looking towards the $100 level in Monero, but I suspect it’s probably going to take a few weeks to get there. In the mean time, it is a 'build as you go' situation in this market.