If the price of XRM exceeds the USD 172 resistance, it will continue the upward recovery trend before reaching around USD 179.60 and USD 183.10. Even though there were recently lower trading volumes, the price increased as an indication of hoarding by the whales.
Some investors bought Monero (XMR) at its yearly low of 96.7 USDT on June 17th. They received a return on investment (ROI) of around 79% if they sold within the last few days. However, that bullish rally is far from resuming its all-time high of 519 USDT on May 6th, 2021.
Although that indicates that XMR might still be on a bullish rally after the collapse, there are several factors to consider:
The trading volume of the bullish days was lower than usual, indicating a stage of hoarding by the whales.
In addition, Monero has been trading at a midpoint of its price over the last few days. It shows a downward trend, as it is below the 20, 50 and 100-day EMAs. Since all points to a pullback from the upward recovery trend, XMR needs to exceed the USD 172 resistance to keep rising.
However, the overall crypto market undergoes a bearish trend as the Ethereum Merge approaches, with probabilities of unusually high volatility. So the path for the Monero price to continue the previous uptrend becomes complex.
The Price of XMR Might Continue to Rise
The breakout of the resistance around USD 172 would imply the upward recovery trend would continue. Amid that hypothetical scenario, the next resistance would be between USD 179.60 and USD 183.10. When the value of XMR overcomes those levels, it would be ready to consolidate around USD 206.
However, those situations seem increasingly likely since the price broke through the USD 160 and USD 150 support. However, the path of XMR toward USD 200 might extend until late 2022 or early 2023 if the bearish trend suffers a reversal.
Since the USD 142 zone shows an accumulation area, it may represent a rebound for the current scenario before continuing the previous bullish recovery trend.
Monero occupies an excellent position among the cryptocurrencies that boost fully private transactions. It also offers inventors the advantage of being a pioneer in this area.
Not Everything Is Rosy for XMR in the Long Term
The price of XMR is recovering from a considerable drop causing it to lose close to 80% of its value. Therefore, the upward trend over the last few days may have been only a relief rally before further falls.
Low trading volumes also accompanied that increase, which might represent hoarding by the whales.
However, the whales are the lesser evil for long-term predictions, as Monero was the flag cryptocurrency of privacy years ago. Vulnerabilities detected on that network demolished it, making it possible to trace transactions. Although they solved those weaknesses, each has caused those seeking absolute privacy to lose trust.
Besides, new options are aiming to innovate on Monero, such as Zcash and Verge. Other networks like Phala Network seek to implement smart contracts and cloud computing privately.
The behavior of the whales might determine whether the price of XMR will consolidate above USD 200.
By Alexander Salazar
