Monero is riding against tide- investors should watch these levels
If there has been one cryptocurrency that has taken the market by surprise over the last 24 hours, it’s Monero [XMR].
In a market where top coins, including Bitcoin [BTC] and Ethereum [ETH], have dropped in price, XMR has increased. At press time, the private cryptocurrency had gone up 7.84% as per CoinMarketCap.
However, the rise may not be shocking as many would have intended, especially after its big fall to $138.93 on 23 July. Over the last seven days, its cumulative price increase has been 3.89%.
At the time of this writing, XMR traded at $153.21. The question is— was it expected? A look at the charts before this run would tell.
The journey of surprises
The potential of a sustainable uptrend has shown likely signs since 14 July especially considering the 20-period EMA (blue) crossed the 50-period EMA (yellow) at that time. Expectedly, the price started its move up on the same day. It went from $124 and traded at $145 on 18 July.
However, its first major dip happened on 23 July after it fell to $142.99 from $153.18. Still, the 20 EMA remained above the 50 EMA, indicating that the price uptrend was not over. At press time, it stayed the same. Thus, some XMR traders may have expected an increase in the past 24 hours.
Similarly, the Relative Strength Index (RSI) had a similar pattern, rising to a solid buying level of 59.59, at press time. Despite the price movements, XMR traders may want to look out for some spots, which may result in a reversal.
However, the recent run may have justified its excellent position to buy XMR earlier.
The current trend showed that the 50 EMA could overtake the 20 EMA soon. In the same vein, the momentum revealed by the RSI showed that the buying pressure might not sustain its levels as XMR seems to have been overbought. At this point, the XMR green trend may not keep up for the next few days.
So what’s next on charts?
On-chain metrics may have other opinions even with a possible reversal of the uptick. Data from Santiment showed that there had been an increase in its 24-hour volume—a 58.3% increase to $156,454,185.
Interestingly, a rise in market cap did not align with the social volume metrics. It only went up to 0.633%, indicating that the XMR interest could dwindle.Source