A sea of red has pervaded the cryptocurrency market since yesterday, but there are a few rare exceptions. Monero (XMR), currently the 28th largest cryptocurrency, is at the time of writing one of only 2 top 30 cryptocurrencies to post a gain since yesterday. It is also the second best performing cryptocurrency in the top 30 over 7 days, with an increase of 26%.
At yesterday's high of $ 340, the cryptocurrency posted a gain of + 100% approximately since the start of the crypto rally on July 20. However, if Monero outperforms most cryptocurrencies, it is no coincidence. In this article, we will therefore endeavor to explain the reasons for the rise in Monero (XMR), then above all to try to predict whether the progression will continue or not.
What is the main advantage of Monero cryptocurrency (XMR)?
While Monero's rise was part of a widespread cryptocurrency surge, it was also spurred by growing concerns about the bitcoin non-fungibility issue.
Monero tries to overcome some of the inherent flaws in bitcoin. In the same way that advertisers track browser cookies, cryptoanalysis companies constantly monitor transactions on the Bitcoin network. They don't even need user permission since the ledger is public. Problems can arise when criminals launder the proceeds of illegal activities through cryptocurrency transactions with unsuspecting traders. Cryptoanalysis companies can trace these "tainted bitcoins" and expose new investors to law enforcement surveillance, even if they have no idea where their bitcoins come from.
Unlike bitcoin, Monero protects the identity of its users by generating unique wallet addresses for the sender and recipient of each transaction. Additionally, the network broadcasts decoy transactions for each genuine transaction to make it harder for analysts to brute force guess wallet addresses. Since Monero transactions are untraceable, each Monero token is functionally the same, making them fungible.
Anticipation of Atomic Swap Benefit Monero
Last quarter, the developers of Monero launched the Atomic Swap feature, which allows users to exchange their Monero for bitcoin without the help of a third party (such as a broker), while protecting previous Monero transactions from the big one. Bitcoin pound.
However, last Friday, the Monero Project (XMR) officially announced the start of the Atomic Swap implementation developed by the cross-blockchain COMIT Network protocol, which aims to simplify exchanges between XMR and Bitcoin.
Several recent buy signals to note on XMR
From a technical standpoint, the daily Monero (XMR) chart below shows a very clear uptrend for more than one month, highlighted by a bullish channel visible in green.
This chart also shows that the Monero recently broke its 100 and 200-day moving averages, as well as the peak of June 3.
In the very short term, it is not excluded that the cryptocurrency will correct slightly, but the psychological threshold of $ 300 should prove to be a solid support. Then the 200-day moving average currently at $ 265 would kick in.
On the upside, the $ 350 area, where the upper bound of the bullish channel is, along with the 50% retracement of the fall from May 8 to July 20, will be the first hurdle. Then another target is found at $ 430, ahead of the all-time high around $ 500.