Looking at the four hour chart, we can see that XMR is in a (blue flag) consolidation pattern, after plummeting through moderate support at the 38.2% retrace. XMR has made a few attempts to get back above the 382, but each has been unsuccessful. I don't want to read too much into the , because there have been several instances where XMR has created bear flags that broke to the upside. Instead, I just want to know that it's there, and see what it does. A break lower will confirm it as a . We can see that the flag is starting to reach the bottom of the 38.2% retrace. If XMR breaks above that level, it will immediately run into resistance at the 50 and the 200 . Given the fact that it is a , and there is substantial overhead resistance, I think there is a higher probability of a downside break, than one leading to the upside. However, there has been a crossover on the (green circle,) so a shift in underlying momentum has taken place. Ultimately, we need to watch this flag, to see where we go next. If the flag breaks down, initial support should be found at the dotted red , and then the bottom of the pink . A break to the upside, will need to launch XMR above the 200 (in purple,) before a low opens up. XMR is slamming into the bottom of the 382 at the moment, so we will have to watch price action very closely here. Monero has been highly volatile lately, and the is likely to continue. So be safe, traders, and watch those key levels.
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***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
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