Monero [XMR] Faces a Fight With The Bears
As of Friday, August 3, Monero [XMR] is under pressure and is trading with losses. In the morning, the crypto is trading around 116.66 (-4.6%). This means that the bears have started to speed up the sales, thinks Dmitriy Gurkovskiy, Chief Analyst at RoboForex.
Amid the global sale of virtual currencies during the last few days, Monero has been looking more or less stable, but it could not avoid the long-standing bearish sentiments either.
Now XMR is clearly moving towards 110.00. This level may stop the sale, but in case of its breakout the sellers will head towards 106.40-106.50, which is near the lowest values of the year. However, a different scenario is possible as well. This view assumes there will be a bounce off 110.00 to 120.00, where the way towards 128.50-128.60 will be opened.
Thus, the key support level for XMR is at 110.00. The important resistance is now at 120.00. On D1, the MACD Indicator is heading down into the negatives and is signaling the sales. The Stochastic has entered the overbought zone, it has ceased to head, but is still issuing a sell signal.
Among fundamental news important for Monero, there is information on security issues. Recently it became known that fraudsters were using some failures in the XMR code and were copying a line of users’ wallet code, thus withdrawing money from their accounts. In reality, those were fake transactions, which are very difficult to trace. In addition, hackers were taking advantage of the shortcomings of the system: a fraudster changed the number displayed by the wallet during use and withdrew more money than there was in the wallet.
Incidentally, Monero itself has almost not reacted to this news at all, because it was already under pressure anyway. Compared to other altcoins, the day before, Monero was heading down more moderately.
Earlier, a technical audit destined for the Bulletproofs protocol was finalized in Monero. This technology is aimed at improving the scalability of the network, which will speed up the processing of the transactions and reduce the commission. Alongside this, the technology is a project with zero footprint, i.e. it is practically anonymous.
Any predictions contained herein are based on the authors’ particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.