Monero price is defying gravity as other cryptocurrencies slump. The XMR token is trading at $240, which is about 10% above the lowest level this week. This price is slightly below the year-to-date high of $252. As a result, its total market cap has risen to more than $4.3 billion.
Why is XMR rising?
Cryptocurrencies are having a difficult time as investors continue worrying about the global economy as inflation soars. Bitcoin, the biggest cryptocurrency in the world, has moved below $40,000 while the total market cap of coins has moved below $2 trillion.
This performance is attributed to the actions going on in the bond market. The bond sell-off has continued in the past few weeks as investors worry about inflation and the Federal Reserve.
Data published on Monday revealed that inflation expectations were rising sharply. Most Americans now expect that inflation will be at 6.6% in March next year. That was a few points above the previous expectation of 6%.
As a result, the Fed has hinted that it will be more aggressive in a bid to tame the rising inflation. This process will include more rate hikes and quantitative tightening. As a result, bond yields have risen while a yield curve inversion has happened. Stocks have also fallen, with the Nasdaq 100 index retreating by 8% from its highest point this month.
It is unclear why the Monero price has risen sharply in the past few days. Analysts believe that this trend is mostly because of the rising demand on anticipation of more cyber hacks in the coming months. Monero has become a favorite cryptocurrency among ransomware attackers because of its privacy tools.
Monero price prediction
So, should you buy Monero? The daily chart shows that the XMR price has been in a remarkable uptrend in the past few weeks. Notably, it has performed well during Russia’s invasion of Ukraine as investors anticipate more hacks by the Russian government.
Monero has risen above the 50% Fibonacci retracement. It has also risen above the 25-day and 50-day moving averages. The coin’s rally accelerated when it moved above the important resistance at $187, which was the highest point on February 9th.
Therefore, the path of the least resistance for the Monero price is to the upside. If this happens, the next key resistance level to watch will be at $300.