The market seems to be going through some form of correction right now. Bitcoin surcharged over $8,000 and this could indicate that privacy coins are going to perform better too. In order to find this out, it is important that you use two indicators. This will help you to find out the resistance levels, and the moving averages too. When you are able to take all of this into account, you can then begin to assess the outlook for things like ZCash, Grin and even Komodo too.
The first technical attribute is that it is going to be used to analyse the mid-term future and even the anonymity of the resistance points. These are defined as being predetermined and they are also price levels on the charts too. These act as barriers and they do tend to prevent an asset from being pushed in a certain direction.
Support can hold or even pause the market valuation of any asset. This is normally done during a downtrend and this is especially the case when you look at the volume of buy orders. The resistance points contain the price of an asset that continues to ascend and this is especially the case when you look at the uptrend too. These can be seen as profit levels where the volume of almost every sell-order is high.
In addition to all of this, the moving average is one of the most popular indicators. This is going to try and help determine the short-term outcome of the currency that has been placed under analysis. A perfect moving average is going to be produced over a set period of time. When you look at the one day chart for Monero, you will see that it went through a consolidation period. During this time it was traded within a set range of resistance and support levels. After XMR happened to break through this range, it then went up to the next resistance point. This then became supportive when the breach happened. It went up 20% to the point where it was sat at nearly $80 and it went up another 20% to reach 90%. Now, XMR is actually sitting at a level of support, it’s safe to say that a rebound can be expected. It could happen to back up the resistance and you may even find that the privacy coin is not going to be able to gain from this experience. If a coin was not able to gain enough momentum to bounce then there is a high chance that it will fall down right next to the current support level.
Of course, when you look at the full chart, you will see that the most recent drop in the market valuation was done by the break of the moving average. Sure, the 30 day MA could not actually hold the price from falling even more but it would appear that the 50 MA could be acting as a makeshift support point. Breaking below this average could be what the market needs to try and take down.
The $61 support level really has been a major key point for ZCash. This level really was able to hold the market valuation for nearly a month and this happened until ZEC was able to gain a lot of bullish momentum. It then shot up 28%. When it reached the $78 resistance level it then formed a bearish spin and it even predicted a pullback too. This influenced the retrace and it also meant that it followed back to the $68 support level. If this level is somewhat able to hold then it could help to trigger a rebound and it may even go higher too. Breaking below this current zone could take the privacy of the coin to a new level. When you look at the four hour chart, you will soon see that the moving average can stop ZEC from descending even more into the moving average. A bullish and even an engulfing candle has formed around the zone and it could be something that ZCash can bounce off. If this currency alone is able to trade above the MA then it can be expected that it will try and reach the resistance level. If there is not enough buy pressure however then the ZEC could break below and you may even find that it finds a level of support around 50MA.
When you look at the Day One chart, you will soon see that Verge has failed to break the resistance point. Of course, this was followed by a pullback of well over 19%. If the XVG market valuation happened to deflate then it is more than possible that this would plummet to the support level. It may even try and take XVG down as well and this could actually represent a very strong level of support for the crypto’s price. Breaking the average could create a drop in the XVG valuation. This would take it down to the moving average over 30 days. Around this zone, you will see that a reversal could actually form and this could then signal that Verge is on the rebound.
Komodo has been trading around the $1.22 level for resistance and when you look at the $1 support level you will find that it has tried to break above these levels in more ways than one. It goes back to trade within this range and now a spike in volume could actually take KMD out of the trading zone. KMD can actually be seen trading above the MA on the 4 hour chart and this happens to be a very bullish sign. If it stays trading above this average, you may even find that it goes on to test the resistance level and that this can be seen on the chart.
The hype regarding Grin seems to have faded and it also looks to have experienced a steady decline too. The selling pressure does not appear to have settled over time and it may have even gained some bullish and bearish trends too. When you look at the Day 1 chart you will see that the grin needs to continue and that it is also above the support zone of $1.88 too. The lowest point or even the downside will encourage it to reach all-time lows. Even so, the privacy coin is supported by the $2 zone right now. If it is somehow able to hold at this area then it may be able to test the resistance point and this is especially the case if the volume picks up.
When you look at the four hour chart, you will soon see that the moving average is the drop down. The moving average appears to be steady for the last 20 hours but it could be getting weaker as time goes by. It does however remain to be seen whether it is able to build a high level of bullish momentum. This could take the currency beyond the moving average and it could even encourage it to hit the resistance level. This is especially the case when you look at the chart.