Most people know Monero as a privacy-centric coin. Monero’s team would do anything to remain reputable in that sector. This is partly the reason why its valuation exceeds $2.5 billion. In recent weeks though, GitHub acquisition may end up fueling recent price slump despite coin listing at Huobi. Week over week, XMR is up three percent in the past week but down five percent in 24 hours hinting at how bear pressure have been. Would there be a reversal if we see pockets of bull pressure at $140?
Let’s check what the charts say.
From the News
So, perhaps the biggest acquisition this week is that Microsoft acquisition of an open source code repository site, GitHub for a whopping $7.5 billion. The coding community is not very happy about this especially considering Microsoft’s track record of nurturing products. Originally, GitHub was meant and actually remain as it is, a place where coders anywhere in the world can collaborate. At any time of the day, they can download a given code, review and update it for review by other developers.
— GitHub (@github) June 4, 2018
It’s also a receptacle for code for several startups as its purely open source. At the same time, non-technical persons can go to GitHub, download the same code and use it for their own purposes. It is how it works until now. While Microsoft insists that it shall remain at it was and assuring the coding community that GitHub will always be a “developer first” platform running independently from Microsoft, most don’t agree. And they are right.
After this acquisition, new terms and conditions indicate that Microsoft is asking developers to upload their user ID and in one of the clause they say all the code uploaded to GitHub belongs to Microsoft. That’s not all, what will happen to GitHub’s Atom Editor? Will it be de-prioritized or GitHub be swamped by Ads because anyway how would MS make their money?
These and many other reasons are why Monero might, just might move to GitLab. After all, it has a parallel repository there and are more concerned about privacy than most cryptocurrencies. Then again, the outrage now is why could GitHub sell whereas it was founded out of open source principles?
Monero (XMR) Technical Analysis
Here, it’s hard to miss those series of lower lows in the last five months. Despite there being pockets of buy pressure mid-range, it’s obvious that sellers are in charge. Going forward, it simple to trade with the trend and sell with every high in lower time frames. However, that would be risky considering recent technical formations in this time frame.
Our first level of support lies at $140 which coincidentally is Dec 2018, Feb and June lows as the weekly chart shows. Because of this, $140 is important for our analysis. Secondly, the shape of last week’s candlestick and the rejection of lower lows resulting in the bullish pin bar at around main support. Ideally, this week could have been a perfect week for searching long trades in the daily or even the 4HR chart. However, the failure of Monero (XMR) buyers to push prices above $180 contradicts last week’s candlestick and this keeps us at bay for the moment.
Like most coins, Monero (XMR) prices have been moving within a tight trade range with upper limits at $180. The lower limit and main support remains anchored at $140. As we have mentioned, $140 plays a role because should there be a confirmation of bear pressure today replaying yesterday’s events then our next stops is at $115.
On the other side of the coin, should we see prices aligning with last week trend and recovering above June 3 highs then odds of prices testing $220 and later $300 would be high. For those who are skeptical, remaining neutral until either of our conditions are met is a better strategy.