I last talked about Monero two weeks ago.
I stated price was back in the daily demand zone at $160 that was originally formed in April. I went on to state price needed a close above the daily trend line and buyers needed to take out the sellers at $200 before considering going long.
Since that time, price has trickled down further into the daily demand zone. I never spoke about this before on Steemit, but when price reaches a demand/supply zone and lingers, price absorbs any remaining unfilled buy/sell orders. As a result of price lingering in the daily demand zone at $160, there are no more unfilled buy orders. Meaning, there aren’t any more buyers to take price higher.
Another example of this situation was when I recommended buying Steem when price entered the demand zone at $2.45. Price lingered in the zone for several days and eventually the zone was breached because there were no more unfilled buy orders.
What you always want to see is price approaching a zone quickly. For example, on 6/4, price came into the GBP/AUD daily demand zone at 1.7400 quickly and quickly move away from the zone the next day. When this happens, it increases the probability of the trade working.
In the case of Monero, the daily demand zone at $160 is no longer valid. It could still work, but the probability has drastically decreased. However, I found a bear trap on the weekly chart. Sitting right below the daily demand zone is a weekly demand zone.
The higher the the time frame zone, the stronger the zone. Thus, I anticipate price now turning at the $120 level. In most cases, the weekly zones are fairly wide, so I suggest waiting until price penetrates the zone to minimize risk.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
