Monero got absolutely pounded on Thursday, as word has come that the Chinese authorities are indeed cracking down on crypto currency exchanges. The $100 level has been breached, and I find this to be a very negative sign. I believe that Monero will continue to go lower, reaching for the $90 level next. However, I think that there is probably a high likelihood that we reach as low as $80 after that, as there is much more in the way of significant support to be found in that general region. With this in mind, I think that short-term rallies or selling opportunities, and should be treated as such. However, if we can close above the $100 level for the daily charts, I think that we could start to nibble on little bits of Monero to try to pick up the longer-term uptrend. Expect volatility to continue The reason I say pick up small positions is that the volatility should continue to be an issue when it comes to the Monero markets. After all, it is smaller than Bitcoin, and Bitcoin tends to lead the rest of the crypto currencies higher or lower. With Bitcoin being targeted by the Chinese, there’s a bit of a “knock on effect” in this market. Also, the US dollar has been strengthening overall, and that of course has a similar effect here. With this being the case, I believe that it’s only a matter of time before the markets find a reason to buy, but we need to see the US dollar slow down, and more importantly - the Chinese government. Until then, it will be very difficult to buy this market, and I suspect that there will be a significant amount of selling pressure until we get some relief from both of these factors.

• published: 14 Sep 2017
• views: 60