Monero (CRYPTO: XMR) sold off over 60% on Wednesday in sympathy with Bitcoin (CRYPTO: BTC) following an announcement from the Chinese government regarding its plan to crack down on Bitcoin mining and trading.
On Thursday and Friday, Monero staged a big recovery and surged almost 150% from its Wednesday low of $136.35 back up to $338.79 before retracing slightly.
The Monero Chart: On Friday, Monero consolidated between support near the $250 level and resistance near $300.
After briefly regaining the eight-day exponential moving average Friday morning, Monero lost it as support when Bitcoin plummeted.
Monero is also trading below the 21-day EMA with the eight-day EMA trending below the 21-day EMA, both which are bearish indicators.
Monero is trading above the 200-day simple moving average, which indicates overall sentiment in the cryptocurrency is bullish.
Large trading volume over the last three days caused Monero’s price to fluctuate wildly, and when its relative strength index dropped to 27% Wednesday, it quickly corrected to bring its RSI back up above 30%.
Bulls want to see bullish volume push Monero back up over its resistance level at $303.09. If Monero can reclaim that level as support it has room to move toward the $338 mark.
Bears want to see bearish volume push Monero back down to the $250 level. If Monero was unable to hold that level as support it could fall toward $217.25 before potentially bouncing.
XMR Price Action: Monero was trading 3.84% higher at $255.06 at last check.
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