Monero Price Analysis Signalling a Rally
Monero (XMR), the 10th largest cryptocurrency by market capitalization (according to CoinMarketCap.com), is now riding the bulls. Trading volume is picking up in light of the recent reversal seen in Monero’s price. Down 70% since its record high (on December 20, 2017), it has finally reversed its course. The crypto has been trading in the green and treading upwards at a steady pace. XMR is up 50% over the past 10 days. One fundamental reason driving the demand for Monero is the shift in investor preference towards privacy coins.This has especially taken prominence in the light of increasingly reported instances of crypto thefts and fraud. (Read, Less Risk, More Return: 4 Privacy Coins That Are Now Outperforming Bitcoin, for our analysis of privacy coins’ performance with regards to other cryptocurrencies.)
1 Fundamental and 4 Technical Indicators Now Support the Monero Price Rally
From a technical perspective, we currently see 4 solid reasons for supporting XMR. The crypto has seen 3 prominent swing highs since the beginning of the year. However, none have been strong enough to break the long-term downward sloping trend line (dark green in chart above). However, the mood is entirely different now. XMR seems to be setting the stage for a price rally. Factors supporting this stance, include:
- The August 31st breakout marks XMR’s entry into the bullish territory, well supported by 3 other technical indicators.
- Monero price is steadily treading towards its immediate resistance level of $148, with a high probability that this level could be breached anytime soon.
- The RSI above 70, confirms market bullishness. The relative strength index (or RSI) is a momentum indicator which indicates strength in market movement. Anything beyond the neutral 50 indicates strength in market trading volume that is driving the current trend. A number below 50 signals weakness in market activity driving the current trend.
- A bullish crossover is about to be formed anytime now. The 14-day simple moving average line (SMA-14) is about to crossover the SMA-50 from below.
However, such breakouts are sometimes followed by a downward correction towards the trendline. Subsequently, it bounces back from the trendline support to confirm the bullishness. So, those looking to enter Monero (XMR) could watch for any short-term correction here.