Monero price has staged a strong recovery in the past few days. XMR is trading at $221, which is slightly above this week’s low of $180. This rally brings its total market capitalization to over $3.8 billion, making it the 45th biggest cryptocurrency in the world.
XMR steady
Monero is a popular cryptocurrency that differs from Bitcoin and Litecoin in that it was created with privacy in mind. Unlike Bitcoin whose transactions are found in a public ledger, Monero’s transactions are private and can never be tracked.
Therefore, Monero is used widely in the dark web, where many sellers prefer it to Bitcoin. At times, they even provide a discount for Monero transactions.
Monero’s transactions are so private that the American Internal Revenue Service (IRS) commissioned a $600k offer for anyone who could hack the network.
While XMR is popular in the real world, its performance as a cryptocurrency has declined recently. The Monero price has declined by over 58% from its highest level in 2021. In this period, other cryptocurrencies like Bitcoin and Ether have tested their all-time highs.
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It is not clear why the currency has lagged in the past few months. The reason could be that the coin has not made headlines in the past few months. As a result, its demand among investors has faded as they have focused on other fast-growing coins like meme coins like Shiba Inu and Dogecoin.
They have also focused on metaverse coins like Decentraland and Sandbox. This also explains why other privacy coins like Dash and Zcash have lagged.
Also, it is unclear why the Monero price has outperformed Bitcoin and other altcoins in the past few days. My guess is that investors are bargain hunting and attempting to find the next coin that could rise. For thinly traded Monero, a small rise in bullish volume tends to lead to better performance.
Monero price prediction
The daily chart shows that the XMR price has been under pressure in the past few weeks. It has fallen by about 36% from its highest level in August. But it has also done well in the past few days. As a result, it has moved above the key support level at $167, which was the lowest level in December last year.
The Monero price has also moved slightly above the 25-day and 50-day moving averages and is approaching the key resistance at $254. Therefore, there is a likelihood that the coin will continue its recovery as bulls target the key level at $254. This view will be invalidated if the coin drops below $200.