Monero (XMR) Eyes for Sideways Trend Within S/R Levels
Monero and other private coins were delisted from the Bittrex exchange at the beginning of the year. Zcash (ZEC) and Dash (DASH) also faced similar outcomes, continuing the trend of privacy-focused coins being delisted from crypto exchanges. The US has requested Congress to limit the use of such cryptocurrencies to avoid money laundering attempts because of the difficulties they face when trying to track its movement. At the time of writing this, Monero had the 36th largest market capitalization of all the coins.
The price of Monero has been stable in the first quarter of this year. Monero saw a tremendous surge in price in February 2021 and touched its 50-day moving average in March. The price rebounds and continues its climb peaking at around $520. After its peak, it crashed 12.7% on May 12, 2021. This is nothing compared to what comes next. Its single biggest crash happened on May 19, with a loss exceeding -40.98%. Another loss could have been followed, but the price managed to surge and close above the opening price the next day. During the third quarter, the price stayed well below the 50-day moving average but managed to touch it in July.
The current price forecast can be made based on the support-resistance levels. The support level is around $184. The resistance level is near $350. In August and September, we can see the high volume, which indicates high market participation.
The market is expected to move in a sideways trend while staying within the support and resistance levels. The Accumulation/Distribution indicator doesn’t give any clear sign of accumulation or distribution; it is safer to assume that price volume action will not be seen in the market for some time.
To leverage from the volatility rise, one option is to go long and get short-term profits near the resistance level. Another method is to follow the opposite with a stop loss. The current projection is that the momentum will not pick up until another spike in either direction happens. If the Monero price goes below its 52 week low, it is a good idea to forget about Monero and not engage in it. Based on our Monero predictions, going short will be a better idea since there is no support from financial authorities allowing its usage. These limitations on the workings of the XMR coin will inhibit it from achieving its full potential and capture more market share.
Comparing Monero (XMR) with Zcash (ZEC) shows that both tend to follow the same price pattern. This can be attributed to their focus on privacy coins. The relative price comparison and the chances of the cryptos to follow the same trends are the same. In this scenario, one can use the breakout of the other coin to enter the position into one. For example, if XMR is breaking out, one can enter a new position in ZEC. This strategy is a safer way to enter the market with minimal risks.