Monero had an interesting session on Friday, as we initially went sideways, and then spiked to the upside later. We reached as high as $152, but pulled back in the day at roughly where we started. Because of this, I think it shows a general lack of confidence in the market currently, as looking over the last couple of weeks has seen this market essentially go sideways. I think a lot of this comes down to people being a bit confused as to what the Federal Reserve is going to do, and that of course has an effect on the US dollar. However, I do see a couple of very important levels in this market that are worth following.
Massive support below
I believe that there is massive support below at roughly $125, so if we can stay above there, I’m more than willing to buy this pair on dips. I think eventually we will break out to the upside, perhaps reaching towards $160 next. It’ll take some time, and certainly some momentum building to do so, but I think eventually the momentum comes back into the marketplace. Most crypto currencies have been acting like this lately, surging higher and then going sideways for an extended length of time. Monero of course is no different, and it looks likely that the currency will follow the other crypto currencies. In fact, Monero tends to follow overall momentum, so pay attention to that. If the other crypto currencies are rising, Monero tends to do so as well. However, that works in both directions obviously, so keep that in mind.
If we break down below the $124 level, that would ruin the thesis that I have right now of consolidation followed by bullish pressure. I still believe that the $160 level above will be targeted, but I don’t know when the market will be willing to make its move. Because of this, I’m looking at adding small positions as we go along.