Monero has gone back and forth during the trading session on Wednesday as we are currently hovering at the $220 level. Furthermore, we are still sitting just above the 200 Day EMA, so this suggests that we are ready to go higher given enough time, but in the short term we are simply grinding sideways more than anything else.
Now that we are well above the 200 Day EMA, it is worth noting that the market is going to perhaps try to build up a little bit of a base before going higher, but obviously, it needs some type of catalyst to go higher. A little bit of external influence from Bitcoin and Ethereum could be beneficial if they continue to go higher. The market now looks as if it is simply waiting to see what it should do next. The market is most certainly an “altcoin”, and therefore it is further out on the risk spectrum than some of the other coins. If those coins do well, then traders will start to look towards the smaller markets to get involved.
Having said that, we also have the exact opposite effect if everything starts to sell off, Monero will sell off drastically. If we were to break down below the 200 Day EMA, we could get a bit more of a selloff, perhaps reaching down towards the 50 Day EMA. In that scenario, then I would not trust Monero in the short term, but I do recognize that it all comes down to what happens with the crypto markets overall. The Monero market is very small, but it does look as if it is trying to follow Bitcoin to the upside as it had turned around so drastically. The candlestick for the last couple of days has been very neutral, so this tells me that the market is simply waiting and hesitating. This does not bestow confidence, so at this point, I would be very neutral when it comes to this market. Longer-term, if we can break higher then we will go looking towards the $250 level, possibly even the $300 level given enough time. As far shorting is concerned, I do not like that idea, at least not yet as I think there could be a couple of small areas of support and demand underneath.