Sat. Aug 13th, 2022

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 March 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 $100 and $120, $80 and $70 represent the strong support levels.

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

Monero is decentralized and not controlled by a single association and like most of the other cryptocurrencies, Monero (XRM) has also advanced in value last several weeks. Monero has a strong resistance area at $100 and it would take a break above this level to confirm a new leg higher towards the $120 level. If the price drops below $80 support that would be a “SELL” signal and the open way to $70. I would not invest in Monero currently, maybe only as the short-term trader with “stop-loss” and “take profit” orders. In the chart below we can see how did the price of Monero performs in the last 30 days. On this chart, I have marked a “trendline” and if the price drops below this trendline that will be a “SELL” signal.

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

Recommendation: The price Monero (XRM) has advanced from $55 above $95 in less than several weeks and the current price of this cryptocurrency stands around $94. 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. If the price jumps above $100 that could be a very good opportunity for the short term traders, short-term traders can put the stop-loss at $90 and take profit at $120 or above. If the price drops below $80 support that would be a “SELL” signal and the open way to $70.

Learn how to invest in Monero Here.