Monero formed lower highs and found support at $163 to create a descending triangle formation on its 1-hour time frame. Price is currently testing support and might be due for a bounce back to resistance around $175.
The 100 SMA is below the longer-term 200 SMA to signal that the path of least resistance is to the downside. In other words, there’s a good chance that support might break. In that case, Monero could fall by around the same height as the chart formation, which spans $163 to $200.
Stochastic is also pointing down to show that sellers have the upper hand. On the other hand, RSI is pulling up from oversold levels to signal that buying pressure is present and that a bounce to the triangle resistance is still a possibility. However, the moving averages might also hold as near-term resistance.
Sentiment in the cryptocurrency industry has improved somewhat after it was reported that several big hedge funds are making preparations to invest in the space. This represents another nod of approval from players that were mostly previously averse of altcoins.
However, the looming tax deadline has prompted widespread profit-taking that led to a sharp drop in prices recently. Once this is over, though, the ongoing trends could resume and a continuation of the positive sentiment could spur more gains.
Keep in mind, still, that regulation is a pressing concern for many investors, particularly as the central banks of India and Pakistan have moved to ban cryptocurrencies.
As for Monero itself, this particular altcoin is looking at a hard fork as well. The blog cited two reasons: First “a PoW tweak to curb any potential threat of ASIC and preserved ASIC resistance” and second to get “the minimum ring size is bumped to 7.”
The same post indicated that Monero developers are willing “perform an emergency hard fork to curb any potential threat from ASIC if needed.”
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