Hi friends! Let's take a look at Monero! Looking at the four hour chart, we can see that XMR continues to fall from the area where I issued my first "warning post." Since then, XMR has had a 25% decline. That is incredibly valuable analysis. We can see that a bear flag
was formed, which has broken to the downside, but price hasn't produced a sustained drop from the flag. Instead, we can see that it has fallen into a trading range, as it continues to test the bottom of the 38.2% retrace, and the top of the dashed red support level
. The 50 EMA
(in orange) is falling toward the price action, and it may continue to act as resistance. As you can see, XMR has also formed a symmetrical triangle (in green.) The bottom side of the triangle has been violated, which decreases it's supportiveness. Currently, it appears that XMR will produce a breakdown from the triangle, and head down to retest the red dashed trendline
. If that level falls, the 50% retrace will be the next level of support, followed by the bottom of the pink channel. Overhead resistance is far more substantial. We have the 38.2% retrace, which is converging with the 50 EMA
, making it stronger as a resistance level
, we have the 200 EMA
(in purple,) the then the top of the symmetrical triangle. The path of least resistance, remains to the downside.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
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