In the past five days, Monero has rallied to a high of 0.002339 on the 13th of February. Although price has retraced in the past two days, a significant pivot zone that has developed. The 0.00185 – which is only visible on the 15-minute and 30-minute charts – has been used as support about five times in the past two days, and also twice as resistance! The market has attempted to break below this pivot about three times today, and failed on each attempt. When this many failed attempts occur in such a short period of time – the usual outcome is a break in the opposite direction!
The triangle formation on the 1-hour chart is also showing that pressure is building up in the market. Is a violent break imminent?
On a longer term time frame, the 0.0022 level holds great technical significance. This pivot zone goes all the way back to August of 2015, when the market used this area as resistance about four times. This price level had not been touched in four months, and when the market bumped against it on the 13th of February, a sharp sell-off occurred. This is a major technical level with a lot of history behind it, and any potential rally over the next few days will definitely have a hard time surmounting 0.0022!
Disclaimer: This is not trading/investment advice!
Chart Source: https://poloniex.com/exchange#btc_xmr
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