Monero Gains Momentum Amid Privacy Coin Shakeup
Monero (XMR), one of the most well-known privacy coins, has seen a significant surge in interest lately. The cryptocurrency rose by 4.2% over the past 24 hours and an impressive 11% over the last week. This bullish momentum has positioned Monero as a top contender in the altcoin sector.
A crucial factor bolstering Monero’s trajectory has been the fallout between ZCash (ZEC) and the Electronic Coin Company (ECC), which resulted in a market reshuffle. ZEC witnessed a sharp drop of nearly 20% in a single day, prompting investors to pivot toward Monero. This shift has helped XMR regain its leadership status in the privacy coin sector, with its sights set on its all-time high of $517.
Analyzing Monero’s Technical Outlook
On the 3-day chart, Monero has been persistently challenged by the $420 resistance level since November. However, recent developments have seen this critical point transform into a support level. Swing traders have identified this as a solid buying opportunity, given the bullish indicators across multiple timeframes.
Using Fibonacci extension levels, Monero’s price action from earlier in the year — which ranged from $165 to $420 — has outlined higher targets of $480 and $577. Although the $480 mark has temporarily resisted Monero’s upward movement, its bullish momentum suggests another test of this level is imminent, followed by a push toward the $517-$577 range.
Technical indicators reinforce this upbeat outlook. The Relative Strength Index (RSI) signals strong upward momentum, while the On-Balance Volume (OBV) continues its positive trajectory, indicating sustained buying pressure. Traders are advised to monitor these levels closely, as a successful break above $480 could set the stage for Monero’s climb to new heights.
Market Trends Supporting Monero
A broader trend supporting Monero’s climb is the ongoing decline in Bitcoin dominance. With Bitcoin prices stabilizing below key growth levels, altcoins are increasingly capturing market share. Monero stands out in this environment not only as a privacy-focused coin but as a beacon of resilience in the crypto market.
Additionally, analysts predict that Bitcoin could rally toward $96,000 in the coming months, which may further fuel optimism for altcoins like Monero. If XMR flips the $460-$470 resistance zone into strong support, traders can target profit levels at $517 and $577.
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Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency investments carry significant risk. Please conduct thorough research before investing.
