Monero fell during the trading session on Wednesday, reaching towards the $88 level. We did find some support there though, and bounced slightly. I believe that the market will probably continue to find support just below current trading levels, but if we can break down below the $87 level, it’s likely that we will go down to the $85 level next. Alternately, if we can break above the $90 handle for a sustained amount of time, then I think we go to the $95 level. This has been a complete turnaround from the massive bullish pressure that we had seen during the trading on Tuesday, and therefore is very negative. I think that we will continue to see extreme amounts of volatility, with Monero being very difficult to hang onto.
The US dollar
Pay attention to the US dollar, because if it rallies in the Forex world, that should probably put more bearish pressure in this market as money tends to move away from crypto currencies as the greenback rallies. Alternately, if we get a bit of a dollar selloff, that should show itself here in Monero. Also, I would keep an eye on Bitcoin, as it tends to lead the rest of the crypto currency world. If it’s rallying, quite often a lot of these others will in sympathy. Obviously, the opposite can happen as well, so I believe that the markets need to be treated very lightly here, but I think that the impulsivity that we see over the last 48 hours is a good sign that we could get a decent move soon.