XMR and ETC Altcoin Analysis for November 7, 2023
Bitcoin has been trading above the $33,500 mark for several weeks now. The relatively low volatility of the main cryptocurrency is leading to a decrease in its dominance and a gradual increase in the value of altcoins. Here's an overview of the market situation for Monero (XMR) and Ethereum Classic (ETC) as of Tuesday, November 7.
Compared to other altcoins, the growth of XMR has been quite modest. Since the beginning of September, the asset's price has increased by 29%, while many coins have doubled or even tripled in value.
Currently, Monero is trading between a support level of $163 and a resistance zone of $171-$175. Given the correlation between XMR and BTC, if the overall positive trend in the market continues, it could lead to further growth in the Monero price. In that case, the next targets for buyers would be the levels of $180 and $187.
A correction of the uptrend is an acceptable development scenario. Below the current level, buyer orders are found in the range of $154.0-$158.5 and at the mark of $147. An aggressive fall in BTC could have a significant negative impact on the XMR price, as the support levels mentioned are likely not strong enough to hold back the heavy selling pressure.
XMR chart on the H4 timeframe
Ethereum Classic (ETC)
The recent local performance of ETC has been on the rise, showing a 28% growth since October 19. However, the overall trend for Ethereum Classic remains bearish. Additionally, any downward movement in Bitcoin's chart could potentially lead to a significant decline in ETC.
ETC has been trading sideways for the past two days, fluctuating between a support zone of $17.50-$17.87 and a resistance range of $18.56-$18.86. If the upward trend continues, the next targets for buyers are the $19 and $19.5 levels.
Below the current support zone, buyer orders are clustered within the $16.75-$17.15 range, with an additional support level of $16.5. In the event of a correction, these levels may offer attractive opportunities for spot purchases of the asset.
ETC chart on the H1 timeframe
While Bitcoin's sideways trend has been a key factor in redirecting investment towards altcoins, investors are advised to proceed with caution when it comes to asset selection. This is particularly true for 'veteran' coins such as XMR and ETC covered here. Other seasoned tokens like DOT, LTC, XTZ, and EOS, which have been on the market for over five years, are also in the mix. Although these coins may see growth in a sustained Bitcoin uptrend, the investment risks are generally higher than for newer assets that have been recently listed for trading and are currently growing in popularity.
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Please note that the analysis provided above should not be considered a trading recommendation. Before opening any deals, we strongly advise conducting your own research and analysis.
TF (Timeframe) — a chronological period equal to the time it takes to form one Japanese candle on the chart.
Horizontal channel (flat, sideways, range) — the price movement between support and resistance levels, without going beyond the given range.
К — simplified designation of one thousand dollars of the asset price (for example, 23.4K – $23,400).
Gray range on the chart — a support zone.
Red range on the chart — a resistance zone.
Correlation — the tendency of prices of different cryptocurrencies to move in sync, often influenced by the dominance of one of the assets.
This analysis was informed by the following educational materials and articles from GN Crypto: