Monero (XMR) has the highest market cap of all privacy coins and thirteenth of all cryptoassets. After facing gradual rises for over two weeks in February 2019, it faced a sudden flash crash on Feb 24. A second crash followed on Mar 4.
Support appears may have been reached around $47, but will it hold or is this second crash part of a longer downward trend?
- There is significant resistance near $50.
- There is significant support near $47.
- Price recently broke down from the ascending support line.
[bctt tweet=”Monero (XMR) has the highest market cap of all privacy coins.” username=”beincrypto”]
The End of Growth
The price of Monero on Binance was analyzed at two-hour intervals between Feb 3 and Mar 4, 2019.
A high of $57 was reached on Feb 24. A sudden crash flash followed. In the early hours of Feb 25, Monero reached a low of $48.
Relative stability followed. Slight volatility was experienced. A resistance area near $50 emerged. This value coincides with the 200-period moving average (MA).
On Mar 3, another flash crash occurred. Support had developed around the $48-49 range. The emerging support now appears closer to $47, though it could drop.
[bctt tweet=”Following another crash, it is estimated that Monero may find new support within the $43-44 range. ” username=”beincrypto”]
At this current price, Monero is trading below the 21,500 and 200-period MAs. Furthermore, the relative strength index (RSI) suggests oversold conditions. This means that the downward trend may continue with a third crash forthcoming.
Following another crash, it is estimated that Monero may find new support within the $43-44 range.
When the crash began on Mar 4, the volume of Monero sold greatly increased. Analyzing 15-minute increments shows heavy selling over this period. Though there are intervals in which the volume bought exceeded the volume sold, the total amount of Monero sold during this period was much greater than the amount bought.
Furthermore, the volume on the bearish candles has been decreasing constantly (dashed line). Price made a temporary bottom at $47.1, but has struggled to break out above the 0.236 fib line at $47.85, which coincides with the 21-period moving average, which is providing very close resistance to the price.
Do you think that Monero’s current support will hold and for how long? Not sure? Don’t worry!