Monero Price Analysis: XMR/USD Set for Further Potential Gloom; Big Bearish Pennant Eyed
- The Monero (XMR) price is trading within a narrowing daily range, after the brutal selling last Sunday.
- XMR/USD has formed a bearish pennant pattern; this has been in play since early December 2018.
XMR/USD: Recent Price Behavior
Monero price action has been subdued of late and very much narrowing, as a cautious tone across the market continues to prevent any price progression. Over the last four sessions now, XMR/USD has traded within an extremely narrow range. The high is seen up at $50.50, the low at $48.25, the tightest daily range observed since the start of the month. This form of trading came into effect after the aggressive amount of volatility that hit the market last Sunday.
XMR/USD at present is moving within a bearish pennant pattern formation, which began to take shape in early December 2018. The price has continued to respect this trend, as the bulls have failed on several occasions this side of the year to try and escape its confinements. Unless buyers can swoop in and defy the odds of this technical set up, the price may have to accept its fate of further downside pressure.
Monero In-Browser Mining Service Shutting Shop
Coinhive, a browser-based Monero cryptocurrency miner, has announced that it would shut down all of its operations on 8th March 2019. The company cited the steep bear market which is yet to be over, the 50% drop in hash rate caused by Monero’s hard fork and current market conditions that have seen XMR shave off around 90% since the peak highs in 2018.
Coinhive quick became popular with several websites after it became one of the first to offer such a unique service at the time product. Interesting to note, it controlled over 70% of the in-browser mining market. It, however, did not take long for cybercriminals to adapt it for malicious uses. They were able to embed it into websites, without their consent or knowledge and then mine XMR for themselves.
Technical Review – XMR/USD
As detailed earlier, XMR/USD is subject to further deep selling pressure should the bears force a breakout from the pennant structure. Support is observed down at $44.60, which the lower trend line of the mentioned pattern. Further south, eyes would be on the 2018 low seen at $38.25, which printed in December.
To the upside, immediate resistance should be noted at $54.80, the upper acting trend line of the pennant. In proximity to this sees an area of supply running from $53 up to $60. XMR/USD has not been above this zone since the start of December 2018. Further north, there is a chunky barrier observed from $80-$90 range, where the price last traded in November 2018.
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.
Featured image courtesy of Shutterstock.