The Monero price is still locked in its recent range after yesterday’s bearish reversal. Does the reluctance to rally, suggest the next leg is lower?
Monero is last trading at $252.39 (-0.96%).
The privacy-focused coin had been enjoying a pretty good run. Towards the end of last month, XLM had seen a resurgence of buying interest.
On May 28th, the Australian Tax Office (ATO) sent a warning to cryptocurrency investors.
“While it appears that cryptocurrency operates in an anonymous digital world, we closely track where it interacts with the real world through data from banks, financial institutions, and cryptocurrency online exchanges to follow the money back to the taxpayer.”
This followed the earlier announcement that the US Treasury Department plans mandatory reporting of all crypto transfers above $10,000.
Whilst there may be negative connotations for the market in general, they play to Monero’s key strengths.
At its core, Monero has one goal. The primary objective of XLM is to facilitate payments in a speedy, but more importantly, private fashion. All transfers take place anonymously, leaving no trace of either the sender or recipient. For that reason, XLM could be considered a beneficiary of increasing Government regulation.
The 4-hour chart shows that XLM failed to clear Monday’s high of $282.55. This has resulted in a double-top forming. This is a negative development, and as long XLM stays below $323, it remains vulnerable to the downside.
Tuesday’s $228.63 low should offer a good area of support. However, A close below this level would suggest XLM can decline towards the May 23rd low at $174.75.
Alternatively, if the price can climb above $283, it will target the $316.02 high from June 3rd.
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