Monero [XMR] makes a comeback? Why analysts are eyeing a 176% rally

by
    XMR’s trading volume surged by 30% on daily charts as prices rose by 11.7%.
    Monero seems to come back from legal woes as analysts eye a 176% rally.

As a seasoned researcher with over two decades of experience in the financial markets, I’ve seen countless trends, cycles, and volatility. In my humble opinion, Monero [XMR] seems to be showing signs of recovery, albeit slowly but surely.

For several months now, Monero (XMR) has faced significant hurdles. During this period, it has had trouble consistently registering growth due to ongoing regulatory concerns.

Afterwards, XMR was removed from prominent cryptocurrency platforms like Kraken and Binance (BNB). Yet, over the past few weeks, this alternative coin has experienced modest increases, consistently showing growth on its weekly graphs.

Currently, XMR is trading at $168.80 following its recovery. This represents a 4.94% surge compared to the past 24 hours. Before this rise, Monero was experiencing a significant downward trend and had dropped as low as $136.08.

Read more$70 million in 24 hours: Can Ethereum crack $4,000 thanks to whales?

Although XMR has made some progress recently, it’s worth noting that it is currently falling short of its highest point from the past month at $176. Furthermore, XMR is still 68.88% below its peak all-time high which was achieved in 2018.

Indeed, these latest advancements have ignited a fresh discussion among us researchers regarding whether this upswing signifies a prolonged rally for the altcoin in the future.

Similarly to the trend observed during 2016-2017, crypto analyst Murad has noticed a striking resemblance in the current market pattern. This comparable behavior is significant because it’s the same timeframe when altcoins experienced a prolonged surge.

Prevailing Market Sentiment

Read moreBitcoin halving could be a ‘sell-the-news’ event, at least for a few months

According to Murad’s examination, the 2016-2017 bull market featured a significant price increase in 2016 (test pump), a massive surge in the middle of 2017 (mega pump), and another substantial rise towards the end of 2017 (another mega pump).

Based on Murad’s assessment, it appears that XMR has entered a new phase where its value may increase significantly (bull cycle). This conclusion was drawn from his observation that following two trial increases, the cryptocurrency experienced a surge.

In both 2018 and 2021, this pattern occurred where the altcoin reached a value of $466. If the pattern were to repeat for XMR in the same manner, the altcoin could potentially reach an increase of 176.07%.

What XMR price charts suggest

In the past week, there’s been a significant increase of 11.7% in XMR‘s value. Moreover, its trading activity experienced a notable boost, with a 30.08% rise to approximately $77.3 million over the last day before press time.

Read morePEPE flips Optimism: Can OP emerge from the memecoin mania?

In the same period, XMR’s market cap surged by 4.94% to hit $3.1 billion.

As a researcher examining the Directional Movement Index (DMI) of Monero (XMR), I noticed that its uptrend was robustly established. Presently, the positive DMI stands at 31.24, surpassing the negative DMI at 20.7.

Based on my years of trading and analyzing the cryptocurrency market, I can confidently say that the altcoin’s upward trajectory appears well-positioned for continued growth. The current prices seem to be favorable for an increase, aligning with my past observations of successful trends in the crypto world. However, it is essential to remember that no investment is without risk and always do your research before making any financial decisions.

Moreover, the Moving Average Convergence Divergence (MACD) was higher than the signal line, reinforcing the strength of the altcoin’s upward trend. This suggests that the upward trend may persist or gain more power.

A closer examination revealed that the process of closing out long positions has been steadily decreasing, according to AMBCrypto’s study on Coinglass.

Ever since the dramatic market drop on the 5th of August that triggered liquidations worth approximately $57,000, the market has been consistently low, peaking at just $2.8K as we speak. This suggests a strong belief among investors in the future trajectory and potential of this altcoin.

Read Monero’s [XMR] Price Prediction 2024–2025

Over the past fortnight, there’s been a predominantly inflow of XMR, indicating growing investor interest in keeping the digital currency. This upsurge suggests a generally optimistic outlook on XMR, often associated with a ‘bullish’ market stance.

If the prevailing market mood continues, it’s likely that Monero (XMR) will attempt to surpass its upcoming significant resistance point at approximately $175. Once it overcomes this resistance, XMR could gain momentum and reach its highest value in a year at around $182.

Read More

2024-08-24 02:16