EUR/USD Edges Higher: 20-Day SMA Holds Key as Bulls Eye 1.0600 Resistance

Monicah W

The Euro (EUR) is inching higher against the US Dollar (USD) on Monday, December 9th, demonstrating a tentative recovery after finding support at a key technical level. This upward move highlights the importance of the 20-day Simple Moving Average (SMA) for the EUR/USD pair, suggesting a cautiously optimistic short-term outlook.

Technical Indicators Hint at Building Momentum

While the EUR/USD remains below the psychologically significant 1.0600 level, technical indicators are flashing signs of potential improvement. The Relative Strength Index (RSI) is currently trending upwards, indicating a recovery in momentum. However, the RSI remains below the neutral 50 mark, suggesting a cautious approach as the recovery is still in its early stages.

The Moving Average Convergence Divergence (MACD) indicator adds further weight to the potential for a bullish resurgence. The MACD is printing rising green bars, signifying building bullish momentum. However, a decisive breakout above resistance is still needed to confirm a clear uptrend.

Key Levels to Watch: Bulls Aim for 1.0600, Bears Eye Support

For the EUR/USD to extend its gains, traders will be closely watching the 1.0600 resistance level. A successful break above this level would open up further upside potential for the Euro. Conversely, a break below the crucial support level at the 20-day SMA, currently hovering around 1.0550, could trigger renewed selling pressure. If this support level fails to hold, the EUR/USD could revisit the 1.0530 level and potentially even test the psychological barrier of 1.0500.

Also Read: Is The Euro On The Rebound? Understanding The Impact Of The Trump Trade Unwind

Market Sentiment Remains Cautious

Despite the tentative recovery, overall market sentiment surrounding the EUR/USD pair remains cautious. The ongoing geopolitical tensions and economic uncertainties continue to weigh on the Euro. Investors will be monitoring upcoming economic data releases and central bank decisions from both the Eurozone and the United States for further direction.

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Arkham’s New Feature Can Trouble Crypto Influencers and Celebrity Meme Coins

Arkham Intelligence has unveiled a new feature allowing users to track the wallets of Key Opinion Leaders (KOLs) on X (formerly Twitter).

This development comes amid a flurry of new meme coins, capitalizing on token launchpads for easy launches.

New Arkham Feature Lets Users Track Influencers’ Token Holdings

The update, announced in a recent post, introduces the “Key Opinion Leader (KOL) Label.” It tracks the wallets of influencers with over 100,000 followers on X.

“Influencers with more than 100K+ followers on Twitter/X are now tagged on Arkham with a new label: Key Opinion Leader,” read the announcement.

This means investors can monitor whether influencers genuinely back the tokens they promote or if their endorsements are merely paid advertising. The move has sparked widespread debate within the crypto community, particularly concerning its impact on influencer-endorsed meme coins.

“Biggest scammer on top! Now everyone can watch your wallets. But they should know y’all have multiple ones,” one user wrote.

The introduction of Arkham’s KOL Label comes amid increasing concerns over the reliability of influencer-backed tokens. A recent report revealed that 76% of influencer-endorsed tokens fail to deliver.

Specifically, their value plummeted by more than 90% within just three months.

As BeInCrypto reported, the research suggested earning up to $399 per promotional tweet, incentivizing certain influencers to prioritize financial gain over credibility.

It also showed that many promoted tokens lack fundamental utility and community engagement, leading to inevitable crashes.

“Influencers with over 200,000 followers tend to have the worst performance. The larger the influencer’s following, the lower the performance of the meme coins they promote,” the report claims.

Success Rate of Influencer Predictions based on Followership
Success Rate of Influencer Predictions based on Followership. Source: CoinWire Research

Similarly, blockchain investigator ZachXBT recently exposed 16 influencer accounts on X that coordinated pump-and-dump schemes, leaving their followers to absorb the losses. This fueled debates about the ethical responsibilities of influencers in crypto markets.

With Arkham’s new tracking feature, investors can now scrutinize whether influencers hold the tokens they endorse. This could provide greater transparency in an industry plagued by misinformation and deceptive marketing tactics.

“Interesting move—transparency meets influence,” a user on X remarked.

The pattern mirrors previous crypto fads, where early investors profit while latecomers bear the brunt of financial losses. Arkham’s new tool could expose questionable practices, distinguishing genuine endorsements from misleading promotions.

By tracking influencers’ wallet activities, users can identify whether influencers hold the tokens they promote, indicating a true conviction. They could also spot red flags, such as influencers dumping tokens shortly after promoting them.

Experts, including Tron founder Justin Sun, emphasize the importance of fundamentals, tokenomics, and risk management for investors within the volatile meme coin market.

“I will check on the real social engagement. Are those likes real, or it’s just general bullshit? Do they have lots of influence, and the people really believe them? Also, I will see the founders, see their material, and see the memes they made and the videos they made. I will see if this is the right video and the right social engagement,” Sun elaborated.

These approaches reflect the importance of caution and due diligence instead of relying solely on influencer endorsement.

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