Sun. Aug 7th, 2022

The price of Monero currently stands around $54 and the first strong sign of recovery could be if the price jumps above $80. Although the price can weaken even more putting a reasonable amount of money into Monero could potentially turn out to be a very good investment. Monero is a cryptocurrency with a focus on anonymity, and this is where it diverges significantly from Bitcoin. It is very important to say that Monero has also a focus on scalability and decentralization while at the same time Monero remains an open-source cryptocurrency. This crypto is designed to protect the privacy and anonymity of a sender (or receiver) of coins and it uses cryptography to shield sending and receiving addresses, as well as transacted amounts. What makes Monero so special is its use of ring signatures via its open-sourced protocol known as CryptoNote. Ring signatures act like a group of signers in a joint bank account, but in this instance, the actual signer remains unknown. Monero isn’t the only privacy coin competing for market share and some other cryptocurrencies could potentially limit the adoption of Monero. We can also not forget that regulations on the cryptocurrency market can actually be a threat to this cryptocurrency. I can agree that this is a risky coin, its future is still not sure and it is really hard to measure the current potential of this cryptocurrency. Many currently used coins have limited support, outside of major crypto-exchanges and this is also the situation with Monero. Because of that, I would recommend to everybody to be careful and to invest a small sum of money in this cryptocurrency. In the chart below (a period from January 2019), I have marked major resistance and support levels which can help us to understand where the price could move. The current resistance levels are $70, $80 and $90 and $100, $50 and $40 represent the strong support levels.

Monero is decentralized and not controlled by a single association but like most of the other cryptocurrencies, Monero (XRM) has also weakened in value last several months. Monero remains in the bearish phase but if the price advances above $80 it could be a good sign of the trend reversal. If the price drops below $50 strong support that would be a strong “SELL” signal and the open way to $40.

Learn how to buy Monero here

Recommendation: It is very hard to explain the actual value of Monero and because of that, I would recommend everybody to be careful with investing in this cryptocurrency. The price of Monero has weakened from $120 to $46 in less than 180 days and the current recovery could not be considered the end of this trend. The cryptocurrency market volatility is also one of the things that scares investors away and this is one of the reasons why the market is under the pressure. If the price jumps above $80 that could be a very good opportunity for the short term traders, short-term traders can put the stop-loss at $74 and take profit at $90 or above. The strong support level of this cryptocurrency stands around $50 but according to technical analysis, the downtrend is not over yet.

https://www.tradingview.com/chart?symbol=BITFINEX%3AXMRUSD

https://www.investopedia.com/terms/m/monero.asp

https://www.forbes.com/sites/ktorpey/2019/01/24/heres-the-critical-difference-between-bitcoin-and-other-crypto-assets/

 

 

By Dov Herman

Dov is a Blockchain and Forex trading enthusiast, who spends most of his time trading and examining software who are related to cryptocurrencies and forex trading. You can follow on Dov’s reviews and articles here on TrustedBrokerz and across the web.