Privacy coin Monero and other altcoins like IOTA and NANO are among those to have suffered as a result of the market’s wild volatility. While the fortunes of all these altcoins have varied, they’ve all faced the brunt of the king coin’s price fluctuations.
This has turned out to be the bane of tokens such as Nano, once predicted by experts to grow by over 500% by the start of 2020
Though many new privacy coins have entered the market, Monero continues to take the lead. In fact, Riccardo Spagni, former lead maintainer of Monero, stated recently that just like Bitcoin, Monero might be benefiting from maturity and name recognition.
However, post ‘Black Thursday,’ the coin’s price dropped by 26%, reaching $54.39 from $27.78. The price has maintained a stable range after 13 March, however. Monero was trading at $46.92, at the time of writing, with a market cap of $817,420,512 and a 24-hour trading volume of $137,084,986.
XMRUSD, with its highs and lows, created a rising wedge pattern on its 1-hour chart. The trend lines drawn above and below the price chart pattern indicate a breakout in the downward direction, signaling a bearish trend. We can see two scenarios playing out here.
Gong by the ‘falling wedge’ pattern rule, the breakout pattern direction plays downward 60% of the time. Looking at the price movement, the price was more likely to make a bull run, reaching the resistance at $51, before making a downward journey to reach the support at $42.47 or the second support at $38.89.
Considering the 40% upward breakout chances, the price, which is on its way to reaching the resistance at $54.39, might breach that level and move higher, reaching the second resistance at $57.30.
The MACD indicator also further strengthened the argument made by scenario 1. The MACD indicator showed the signal line crossing over the MACD line, further confirming a bearish breakout.