Monero Analysis (XMR/USD) September 19, 2017
Monero had a slightly positive session on Monday, nearly reaching the $104 level. That’s an area that has been both support and resistance in the past, so it makes sense that we would pause here. I do think we eventually break out though, especially if the noise from China slows down.
China causing sell off
Recently, the Chinese government has been on an offensive against Bitcoin, and unfortunately that works against most crypto currencies. An attack on Bitcoin appears to be an attack on all cryptocurrencies, with the knock on affect being a herd mentality across the board.
If the Chinese slow down their assault on crypto currencies, with Bitcoin being the focal point, I believe that they will all rally again. The $108 level, followed very quickly by the $112 level seems to be a nice target in the short term.
Buy the dips for value
I do believe the dips will offer value, and I think that there’s plenty of support down to the $88 handle. Because of this, I look at dips as buying opportunities, simply adding to my position as we go higher. I have a longer-term target of $120, but it may take some time to get there.
Ultimately, this will be volatile, but if you have traded crypto currencies for any length of time, you will know that volatility is the nature of the beast. It is not until we break down below the $76 level that I would become concerned, because quite frankly every time it looks as if it’s all over, the buyers come back. This is simply one of those trades that works until it doesn’t.
Build a position
Short-term dips offer opportunities to build up a position, and that’s exactly how I am going to play Monero over the coming days. I believe that the $120 level will act as resistance, but a break above there gets us back into the “buy-and-hold” mentality.