The Monero market tried to rally a bit during the course of the trading session on Wednesday as the $150 level continues to see quite a bit of support around it. As you can see, the market has broken down below the level a couple of months ago, and then stabilize before rallying towards the 50 day EMA. It is worth noting that the $180 level has been significant resistance and weave and formed a little bit of a miniature double top as the market then sold off.
Ultimately, this is a market that I think continues to see a lot of volatility, especially as it is considered to be an alt coin. After all, if Bitcoin and Ethereum both struggle, it is difficult to imagine a scenario where Monero suddenly takes off. In fact, we have seen Monero mimic exactly what Bitcoin did during the day. Because of this, it makes quite a bit of sense that we will have to watch Bitcoin first, and then tried to follow here in the Monero market. That is going to be true with all alt coins, so this is probably going to be very similar analysis that you would see in multiple other currencies.
If we were to break above the 50 day EMA, it could open up a move towards the $200 level, and then possibly the 200 day EMA which currently sits at the $216 level. However, I believe it is much more likely to see this market break down below $140 underneath, and then drop rather significantly. If that happens, it would not surprise me at all to see Monero go looking towards the $100 level. The $100 level course has a certain amount of psychological importance, and as a result I think it would attract a lot of attention. This would of course be an area that I think you would have a huge battle on your hands, but if we do in fact see Bitcoin fall apart, then Monero will have to do the same. We may be entering a “crypto winter”, especially as the Federal Reserve is tightening monetary policy. That being said, it is simply a cycle and traders will look to see what the Federal Reserve does, before putting a lot of money into the crypto markets in general.
