The Head & Shoulders pattern that I described in my last Monero article, finally resolved itself over the past two days. There just wasn’t any buying momentum to get price above the big pivot zone at 0.0037 – which formed the right shoulder of the pattern – and the market sold-off very hard yesterday.
After the initiall dump, price recovered a bit, but was unable to get back above the 0.0033 level, as that area started acting as resistance. Actually, the entire range between 0.0033 & 0.0034 is one giant pivot zone. This entire area propped up the market multiple times in the second half of Mach as well as during the beginning of April, but since the market broke under this level yesterday, the 0.0033 area has now turned into resistance. Mark this area on your charts!
While the market has been selling profusely over the past 24h, the 0.0024 pivot – which has acted as support about four times at the beginning of March – also acted as support today. The Monero exchange rate did plunge all the way down to 0.00207 today, but price was unable to stay below 0.0024 for any significant length of time. If price slips under 0.0024 again and stays under, 0.0024 may turn into resistance, and price may plunge further down to the next big pivot zone at 0.0017.
Disclaimer: This is not trading/investment advice!
Chart Source: https://poloniex.com/exchange#btc_xmr
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