Monero Price Analysis: XMR/USD Could Face Another Brutal Fire Sale
- The Monero (XMR) price was hit with losses of over 3% on Monday, as the cryptocurrency shapes up for another potential steeper fall.
- XMR/USD price action has formed a bearish pennant pattern observed via the daily chart, subject to downside risks.
XMR/USD: Recent Price Behavior
XMR/USD price action has significantly narrowed over the last eight trading sessions, reflecting much caution across the entire market. The price has failed to see any progress within the mentioned period, which comes after the steep losses on 24th February. Price behavior is further indicating that the selling pressure may not be over yet.
Monero Vulnerability Via Coinbase Transactions
The team at Ryo cryptocurrency recently posted a blog update, warning users of a significant vulnerability in the Monero cryptocurrency. An email was disbursed to the Monero-announcement mailing list advising exchanges and service operators of a potential bug associated XMR. It detailed that the Monero Vulnerability Response team had received a disclosure regarding a vulnerability. It comprises the mishandling of specific outputs with Coinbase transactions, which are the transactions first in a block made by miners.
In term of the above-detailed mishandling, it has the potential to allow an attacker to produce an imitation deposit of an arbitrary amount of Monero to an exchange. Ryo Cryptocurrency noted that they had countered the problem some seven months ago and provided a link for the patch. However, they detailed that Monero’s vulnerability if exploited could lead to a hard fork. The issue is resolvable by ignoring the non-null RingCT Coinbase transactions.
The email also detailed parameters for the wallet to efficiently provide steps from this being exploitable. Elsewhere, via the Monero official Twitter account on 3rd March, they offered these measures. The issue could affect all users running a wallet on an exchange, a service or a payment gateway. On 6th March the patch is expected to be released at 4 pm GMT.
Technical Review – XMR/USD
XMR/USD is moving within a bearish pennant pattern structure, observed via the daily chart view. The formation of this began to take shape from mid-December 2018 after the steep selling from November to early December. The noted downside has formed the pole of the set-up, and current price action is within the confinements of the pennant.
It is worth noting that, given the narrowing daily range, XMR/USD has formed a range-bound block formation. The mentioned formation is subject to a potentially explosive move to the downside to test the key lower area of supports. Immediately the current range low tracks at $47, and a breach here will open another wave of pressure. The door will be open for a retest of the lower acting trend line of the bearish pattern structure. The next level of support noted at $45; a failure of this holding will expose the 2018 low print of $38.25.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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