Monero recently busted through a long-term descending trend line to indicate that a reversal from the downtrend is underway. Price has since formed an inverse head and shoulders, which is a classic reversal signal.
Price has yet to break past the neckline of this formation to confirm an uptrend, which might last by at least the same height as the pattern. However, the 100 SMA is still below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, there’s a stronger chance for the selloff to resume than to reverse.
Monero seems to be breaking past the 100 SMA dynamic inflection point, though, an early signal of bullish momentum. Price could test the 200 SMA dynamic inflection point from here.
Stochastic has turned lower from the overbought zone and continues to move south, indicating that sellers have the upper hand. Meanwhile, RSI is treading sideways to reflect consolidation.
Monero could be poised for some upside, though, as the team unveiled an initiative to make the digital asset less vulnerable to attacks. According to Justin Ehrenhofer, the director of the Malware Response Workgroup, Monero draws hackers because of two factors: First is its privacy so there’s no need to worry about government or corporate supervision and next is the use of a proof-of-work algorithm that makes it CPU and GPU-friendly.
Ehrenhofer explained the rationale for creating the workgroup:
We created this workgroup to help the victims of these mining/ransomware attacks, who often have no idea what Monero, mining, and cryptocurrencies are… the increased prevalence of Monero-related malware prompted the formation of the workgroup.
In a nutshell, Monero is fortifying its security features with the help of the community in this open-source initiative and website that provides fixes for three types of attacks that commonly used: browser-based mining scripts, system/PC based malware, and ransomware.
Images courtesy of TradingView