As many know, Monero XMR is a cryptocurrency focused on the principle of improved privacy when making transactions on the blockchain. The project was successful in positioning itself at the top of the privacy-focused coin market; thanks in part to his strong team and his community. We will provide detailed updates on both and a technical analysis of the Monero XMR price.
The strong community of Monero rises
Despite becoming more reliable by the day, the cryptocurrency community is still plagued by bad actors, malware and scammers. On a deeper level, some traditional institutions have expressed concern on cryptocurrency used for illicit means, such as money laundering and the financing of illegal transactions.
In the wake of these concerns, community members from Monero (XMR), the market-leading privacy medal, are trying to launch an initiative to combat common cryptographic scams.
L & # 39; initiative, announced on the official website of Monero by Justin Ehrenhofer, he comes from a community with a personal interest in changing the public perception of some coins. The same reason why Monero has attracted a large number of supporters also invites others to worry.
Because of its private and untraceable nature, Monero has become a favorite for scammers. A recent report he showed about $ 175 million in Monero had been extracted from "cryptojacking" programs. The number is much more than any other currency and represents more than 5 percent of XMR's total current supply.
In the Ehrenhofer announcement, he declared that the accessibility of the Monero algorithm was a positive thing, but unfortunately it opened itself up to bad actors.
"While the vast majority of users take advantage of these features forever, some attackers use Monero to earn money from machines without users' consent." They can run miners on Web pages that are activated without the user's consent. machines or hide it in other packages and run mining software. They can infect machines, encrypt local files and request a ransom in Monero.
"The Monero community condemns this my malevolent and non-consensual use of equipment."
The community's initiative to combat malware comes in the form of an educational website, with advice from a community-led group called the Monero Malware Response Workgroup. The site will provide diagnosis and action plans for undesirable mining attacks in the browser, unwanted system attacks and ransomware.
Users can access group contents at the address https://mrw.getmonero.org/
Other positive news from Monero comes from ViaBTC, which has launched a Monero mining pool that provides for a 50% reduction in mining tariffs for the first three months of subscription.
The price action of the XMR / USD pair is currently confined within the confines of a long-term symmetrical triangle. Until now, this triangle has taken four months and we are not yet close to the top. This is what the chart looked like at the end of the week:
XMR / USD weekly chart: 1 October 2018
The commercial scenario is very clear from the weekly chart. The expected conclusion of a symmetrical triangle is that the price action exits the upper edge or the bottom edge of the model. The directional bias of the rupture is the direction of the initial trend, before the price action entered the model. But this is not a hard and fast rule, and operators should ideally pay attention to the following:
- How close is the price action to the convergence point of the trend lines (the apex).
- Regardless of whether price bars / candles have violated one of the trend lines, e it closed below the lower trend line or above the upper trend line.
- The extent to which the release candle has closed beyond the trend line and whether a pullback rejection occurs at the broken trend line.
On the weekly chart, we can see that the price action is starting to move towards the upper resistance line that forms the upper edge of the triangle. At the same time, we also see the 10-day moving average that forms a resistance that is just above the price candles.
Chart for XMR / USD: 3 October 2018
The 50-day EMA can also be seen far above the price action, which shows that, as far as injury is concerned, there is much resistance to further upward movements. So here are the possible scenarios of price action.
Commercial scenario 1
Going for the price activity on the weekly chart which led to the formation of a symmetrical triangle, the candle / bar will probably find resistance in the trend line of the upper triangle. This could happen this week. The 10-day EMA should also resist further upward price movements. Thus, in the absence of a break in the upper trendline, the trendline is likely to be tested several times by the current spark plug and also by the next weekly spark plug. Several tests of the trend line without a successful breakout will open the doors to the price of withdrawal and aim to reach the lower trend line, thus preserving the triangular pattern.
Commercial scenario 2
Although it is not likely at this time, an upside breakout may occur. However, there must be some market news to provide this momentum, so that the candle / bar breaks above not only the upper trendline, but also the 10 day EMA and the EMA of 50 days above it. The 50EMA is hovering in the price area of $ 150. A look at the price action shows that this price area of $ 150 corresponds to a previous support (points marked 1 and 2), who subsequently reversed the roles to become a new resistance (points marked 3 and 4). Thus, any configuration of bullish trades to benefit from an expected breakout must be cautious on these areas.
Commercial scenario 3
It is also possible that the price action is refused in the upper trendline and falls to exit the lower trendline. This will be in line with the direction bias seen most of the time with symmetrical triangle breakouts, since the initial trend on XMR / USD before the formation of this model is the downward trend. If this occurs, then the short positions would be in order.
The long-term, medium-term and short-term prospects of the XMR / USD pair are:
- Long term: neutral / bearish
- Medium-term – neutral
Disclaimer: Note: this analysis was performed on a weekly chart. It takes a whole week to form a candle, so these moves may take several weeks. Entries should be made on graphs with shorter time interval as the daily chart.
And no is an associate member of the UK Society of Technical Analysts (STA). He writes about the financial markets and the technology behind the markets. His articles can be seen on different forex blogs and educational broker websites.