Monero price breaks important resistance. Is XMR a buy?
Monero price soared to the highest point since June 11 of this year as investors cheered the latest network The XMR token rose to a high of $173, which was about 78% above its lowest level this month, giving it a market cap of over $3.1 billion.
Why is XMR rising?
Monero is the biggest privacy-oriented token in the world. It is a leading cryptocurrency that uses advanced technology to ensure that transactions in the network cannot be tracked. As a result, Monero is widely used in the dark web, where illicit trade happens.
Monero price has done well in the past few days as investors cheer the latest hard fork and upgrade for the network. The new upgrade introduced new features. For example, it increased the number of signers for a ring signature from 11 to 16 for every transaction.
A ring signature is a type of signature that can be produced by anyone and they make it impossible to track the origin of a transaction. At the same time, the upgrade introduced Bulletproofs+, which are zero-knowledge proofs that enable confidential transactions. As a result, it reduces transaction size and increases transaction speed.
There are other features of the new upgrade. For example, it introduced the concept of view tags, which will speed wallet syncing by more than 30%. Further, it introduced fee changes to reduce volatility and improved multi-signature.
Therefore, the XMR price is rising as investors cheer the success of this hard fork. Historically, cryptocurrencies tend to rise ahead and after a major upgrade. This also explains why Ethereum price has done well as investors wait for the coming merge.
Monero price prediction
The four-hour chart shows that the XMR price has been in a strong bullish trend in the past few weeks. It managed to move above the important resistance level at $171.90 this week after the network upgrade. The pair rose above the 25-day and 50-day moving averages while the MACD has risen above the neutral level.
Therefore, the outlook of Monero is bullish, with the next key resistance level being at $200. A drop below the support at $160 will invalidate the bullish view.