Monero price has not been left behind in the ongoing cryptocurrency sell-off. The XMR token has dropped to a low of $200, which was the lowest level since March 26th. It has declined by more than 32% from the highest level in April, bringing its total market cap to about $3.2 billion.
Cryptocurrency sell-off
Monero has done better than most cryptocurrencies this year. For example, its price jumped from a low of $132.6 in February to $288 in April. This growth happened as the number of small-scale ransomware attacks continued. It also rose as holders of the coin launched a coordinated move to test brokers’ reserves.
However, Monero has not been immune to the macro challenges facing cryptocurrencies and the stock market. The biggest challenges going on are stagflation, which happens when inflation rises during a period of slow growth.
With inflation rising, central banks have been left to implement severe measures. Earlier this week, the Reserve Bank of Australia (RBA) implemented the first interest rate hike in over 11 years. In the same period, the Bank of England made its fourth interest rate hike since December last year.
Here’s how to buy Monero.
The biggest decider was the Federal Reserve, which decided to hike interest rates by 50 basis points for the first time since 2000. It was also the first back-to-back rate hike since 2006. The Fed now believes that more rate hikes will be necessary this year. It also expects to start implementing a quantitative tightening policy this year.
Therefore, in response to the hawkish Fed, most analysts believe that stocks and cryptocurrencies will perform inversely to how they did in 2020. At the time, they went to a parabolic move after the bank decided to lower interest rates.
Monero price prediction
The daily chart shows that the XMR price has been in a strong bullish trend in the past few weeks. The coin managed to move above the descending channel that is shown in yellow. It also rose above the important resistance at $187, which was the highest point on February 10th.
Monero price seems to be attempting a break and retest pattern, where it retests the support at $187. If this happens, there is a likelihood that it will resume its bullish trend. The key resistance level to watch will be at $240.