Monero recently got a strong boost from bullish market forecasts, putting it on track towards testing an area of interest visible on the daily chart. This lines up with the 38.2% to 50% Fib levels, so there may be some selling pressure to watch out for.
In addition, the 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, there’s still a strong chance for the selloff to resume. Then again, price has moved past the 100 SMA dynamic inflection point to reflect a bit of bullish momentum.
The area of interest lines up with the 200 SMA dynamic resistance around $160.50 to $190, though, so sellers are likely waiting to defend that area. A move past this could lead to a test of the 61.8% Fib just past the $200 major psychological mark.
RSI is still on the move up to signal the presence of buyers but is also dipping into overbought territory. Turning lower could encourage more profit-taking and lead to a dip in Monero price. Similarly, stochastic just reached the overbought zone but has yet to turn down.
Monero got a strong boost from bullish forecasts by Satis ICO research group, which predicted exponential gains for the coin in the next five to ten years. Of course traders not wanting to get left behind were quick to reopen or increase their long positions.
The renewed interest in Monero is also drawing stronger liquidity and activity, which are usually important in keeping a token’s value supported. A continuation of this sentiment, combined with positive developments in the space, could be enough to prop it higher past the area of interest.
On the other hand, resurfacing concerns in the industry could lead to some dips, especially since the rallies appear to be going nonstop and could use a breather.