Monero: weekly market analysis (from 17 January to 23 January 2020 on BTC / XMR pair)
The analysis of the volumes seems to suggest that over the next week XMR could give rise to a new high, however it will be appropriate to go and have a look directly at the graphs to try to lighten our ideas.
BTC / XMR crucial moment for the queen of anonymous cryptocurrencies
For a week we leave out the 30D graph and focus on the weekly one; here we see that the price has been held, for all the last seven days, above the EMA20 and it is precisely the exponential moving average over 20 periods that we must keep an eye on since it acts as a support.
If the EMA20 holds up, it is likely that there will soon be an EMA50 test (in the 0.0091BTC area), otherwise we will only have to hope that monero will not score a new minimum.
The 1D chart continues to show us a decidedly bullish scenario regarding the ichimoku clouds, however until the EMA50 cuts the EMA100 upwards (and very little is missing) it is difficult that there could be an important explosion of bullish volatility; the problem is that the MACD appears to have lost momentum and may end up going bearish soon.
So let's try to take a look at the 4H chart to try to define the trend in the short term; here not only do we see that there has already been a bullish crossing of the 50 period moving average with the 100 period moving average, we also note that a first bearish divergence has already been invalidated and that the MACD does not seem willing to cut the libnea of the zero.
The scenario seems to be still bullish, but the current phase is quite delicate, so it is preferable to protect yourself by placing a stop loss just below the EMA100 (on 1D chart), so in the 0.00713BTC area.
Weekly forecast
Taking a net position without having formed a clear pattern is not trading but is more like throwing a coin than anything else; in this phase, for what we currently see on the charts it is basically impossible to say which direction the trend will take.
What we can say with reasonable certainty is that at this moment the EMA100 on 1D chart seems to offer too solid support to be broken on the first attempt, so those who were at stake and wanted to continue dancing can safely protect themselves by placing a stop loss in zone 0.00713BTC; since those who make such a decision will likely have bought around the 0.0064BTC share even if the SL would snap, they would still take home a 10% profit.
As for me, if I really had to take a position I would bet on a retracement in the 0.007321BTC area (at the EMA20) which will be followed by a rebound that will score a new maximum (I think around 0.0091BTC).
This, however, I want to clarify it, can hardly be called a prediction, more properly I would call it a bet; it will be time to tell us whether this hazard will prove successful or not, for now we can only keep our fingers crossed.
Please note: this post is not intended to provide in any way financial advice relating to how to invest your money but has purely educational purposes.
