Monero Technical Analysis – Another Day of Support Needed – 06/04/18

Key Highlights

• Monero gained 1.86% on Thursday, partially reversing Wednesday’s 10.11% slide, to end the day at $172.38.
• An intraday low $163.5 held above the first major support level of $160.07, with a day high $174.3 falling short of the day’s first major resistance level.
  With key support and resistance levels untested, Monero failed to test selling pressure at the 23.6% FIB Retracement Level of 178.78, with the bearish trend intact though the day.

Monero Price Support

Monero bucked the market trend on Thursday, gaining 1.86% to end the day at $172.38, partially reversing Wednesday’s 10.11% slide that came off the back of a broad based market sell-off.

A start of the day intraday low $163.5 saw Monero avoid testing the day’s first major support level of $160, the slide at the start of the day an overspill from Wednesday’s tumble.

A recovery through to the middle of the day saw Monero move to an intraday high $174.3, falling short of the 23.6% FIB Retracement Level of $178.8 and first major resistance level of $183, with the bearish trend formed at 21^st March’s swing hi $235.96 intact in spite of the day’s gain.

Monero’s hold at $170 levels was the key move of the day, easing concerns of another sell-off, though for a reversal of the current bearish trend, a move through to $200 levels and a test of the 62% FIB Retracement Level of $207.4 would be needed to support a more sustained recovery, the all-time high $477 hit in mid-December some way off, with any chances of hitting such levels again now being in the hands of governments and regulators in key jurisdictions.

At the time of writing, Monero was down 1.4% to $169.39, pulling back from an early morning $175.23 high that came within reach of the day’s first major resistance level of $176.62 and 23.6% FIB Retracement Level of $178.78 to hit a morning low $168.4.

The low struck in the last hour managed to hold above the day’s first major support level of $165.82, with Monero faring better than some of the majors through the early part of the day, supported by a planned network update today that is expected to slightly amend the proof-of-work aglo and prevent attacks by ASICs amongst other amendments.

For the day ahead, direction will continue to be hinged on sentiment across the broader market however, with the day’s first major support level of $165.82 likely to come into play before any upside later in the day.

A move back through to $170 levels in the afternoon would support a run at key resistance levels before the end of the day, though whether Monero can hold at $170 and avoid a sell-off at $178 levels will depend upon sentiment across the broader market, with investors showing little interest to algorithm enhancements in the current bear storm.

Looking at the Technical Indicators

Major Support Level: $165.82

Major Resistance Level: $176.62

Fib 23.6% Retracement Level: $178.78

Fib 38% Retracement Level: $189.7

Fib 62% Retracement Level: $207.37