There is a slight recovery in the crypto market and Monero is not an exception. As a privacy coin, it is preferred by many users and at current prices, Monero prices are up six percent in the last 24 hours but still 24 percent down in week over week basis. If anything, today we might see the beginning of a short to medium term recovery especially if we see buyers pushing prices above $150 and confirming a three day bull reversal pattern which is likely to be completed today.
Monero (XMR) From the News
What’s more, news is that up-to 5 percent of all Monero coins in circulation can be directly linked to malicious malware that mined them using computing power of affected computers. When quantified, that translates to a whopping $175 million worth of Monero that was mined without the consent of the user in a technique called cryptojacking. That’s illegal. This is the reason why the Monero Malware Response Work Group is on the fore front educating the general blockchain community and those affected from what they call “nefarious actions”. Of course, this task group would not be in a position to prevent every hijack or attacks across the globe and that’s why caution and diligence from internet connected crypto enthusiast is needed.
In a report published by Palo Alto Networks, an Internet Security firm, more often than not, and partly because of Monero’s perfect security features combined by the lack of proactive measures to stay safe from those whose computers were used for mining Monero and other cryptos, hackers were successful in their action. From 470,000 samples collected, the research firm identified more than 1,100 web wallets, up-to 3,773 emails associated with common mining pools and close to 3,000 Monero wallets which were weak points compromised by savvy hackers for their own benefits.
Monero (XMR) Technical Analysis
XMR Weekly Chart
It’s clear that sellers have been pressing the gas pedal for the better part of this year. This means while it has been profitable for bears, Monero valuation is down more than 60 percent from their all time highs printed sometime in January 2018. It also means it’s almost the right time to think of changing tact and thinking of buying if technical alignment allows starting from next month.
The reason for this view is advised from the reaction of Monero buyers once sellers breached $140, a previous support line now resistance this week. Well, of course from all angles, sellers are in charge and it should be the right thing to trade with the trend and dump XMR especially if we see sustained push below this week’s lows at a the psychological $100.
XMR Daily Chart
We can remain bearish as much as we want and that skew would only change once we see movement above our key resistance line at $150. That’s May 29 lows and a region of interest in the days to come. On the other hand and as earlier stated, sellers should stay cautious because of June 13 injection of volumes and a consequent bull pin bar with virtually no sell pressure-check it out and note those long lower wicks with small upper wicks and above average volumes accompanying it.
Today’s confirmatory bullish candlestick with normal volume signals a change in trend. As such, I recommend buys for aggressive traders with tight stops at $100. However, conservative traders can wait for until after buyers have pushed above $150 and that’s when they can begin buying on dips. Otherwise any close below $100 effectively cancels our short term buy projection signaling bear trend continuation.