The Monero price went parabolic on Wednesday morning as investors waited for a statement by Joe Biden on cryptocurrency regulations. It is trading at $202, which is the highest it has been since January 20th this year. It has risen by more than 53% from the lowest point this year.
Privacy coins in demand
There are three possible reasons why Monero price is rising. First, there are concerns that the new sanctions on Russia will lead to more cybercrime. Analysts expect that the Russian government will order more cybercrime events aimed at western countries like the US and UK.
If this happens, there is a likelihood that hackers will demand for payments in privacy coins like Monero and Zcash. Besides, most hackers have seen how difficult it is to move Bitcoin. Last year, the Federal Bureau of Investigations (FBI) announced that it had seized funds that were paid as ransom during the Colonial Pipeline hack.
And this year, it recovered Bitcoins that were stolen during the Bitfinex hack a few years ago. Therefore, these events show how difficult it is for hackers to use Bitcoin. As such, many of them could opt to use Monero, which is a secure cryptocurrency whose transactions cannot be tracked.
Second, the XMR price went parabolic ahead of an executive order by Joe Biden on cryptocurrencies. The order will direct agencies to examine potential regulatory changes and the national security and economic impacts of the coins.
Recently, there have been concerns that many sanctioned people in Russia will opt to move their cash using cryptocurrencies. Therefore, Monero and other coins are rising because the impacts of this order will take time.
Finally, the movement coincides with the price movement of other assets like stocks. Dow Jones and Nasdaq 100 futures rose on Wednesday morning as the Ukrainian president said that he was ready to compromise on NATO membership and the breakaway regions.
Monero price prediction
The four-hour chart shows that the XMR price went parabolic in the overnight session. As this happened, the coin managed to move above the key resistance level at $188, which was the highest point in February this year.
Monero has managed to move above the 25-day and 50-day moving averages while the MACD and the Relative Strength Index (RSI) have moved upwards. Therefore, there is a likelihood that the coin will keep rising as bulls target the next key resistance at $250.