Monero failed to remain strong due to the collapse of LUNA, but a 75% price rally has allowed it to overcome all those losses. Less than a week before the end of May, it is possible to trust the bullish behavior of XMR.
Privacy coin Monero (XMR) is making a very bullish signal as it breaks out of a bearish trend of more than four years against Bitcoin.
Amid a bearish crypto market, XMR is trading at around USD 197.32 and has accumulated a 26.9% gain over the last week. While its trading volume is above USD 229.03 million, its market capitalization is about USD 3.58 million. It occupies 25th place in the cryptocurrency ranking, according to CoinGecko.
The Reasons behind the Isolated Rally of XMR
The crypto market has reacted to the downside due to news about US monetary policy. However, Monero has remained firm, indicating that investors have valued privacy when seeking financial protection.
As has happened with the overall market, Monero failed to remain strong due to the collapse of LUNA. However, a 75% price rally from the recent low of USD 119 has allowed XMR to overcome those losses.
In contrast to many other cryptocurrencies, Monero did not benefit much from the 2021 bullish rally. For example, a significant rebound from the current price would be much healthier for XMR than Dogecoin (DOGE).
A hard fork of the Monero blockchain recently occurred, aiming to add privacy and scalability improvements. That might have been another factor that contributed to positivity on the network.
There Is Positivity in the Monthly XMR/BTC Chart
Monero is now leaving behind a bearish trend of more than four years against Bitcoin.
The monthly XMR/BTC chart shows that the price is breaking through the descending line of that trend with determination.
Although there remain less than a week until the end of May, it is possible to trust that behavior. However, the most conservative might expect the price to break through immediate resistance at 0.0073 BTC.
Daily Technical Analysis of the Price of Monero
The daily XMR/USD chart shows the recent significant strength that could create a short-term bullish trend.
The price keeps the 8-day EMA and 18-day SMA crossed to the upside, following that direction. Since it is challenging the 200-period, breaking through that level would be an excellent sign.
Even though the recent steep rally of Monero is healthy, the price could easily continue that course.
Before thinking of selling in the short term, the price needs to break through the ascending line. Losing the closest horizontal support at USD 173 would mean a momentum loss.
Monthly Analysis of the Price of XMR
A significant rejection of low prices suggests an encouraging monthly outlook, marking the bottom of a relevant correction.
XMR might resume its medium/long-term upward trend after gaining support at USD 135.
It could break above USD 285 next, leaving the ground clear for the supply zone around USD 500.
If the price broke the support at USD 135, it would indicate the need for a broader correction. In that case, the ground would be clear for USD 93.
By Alexander Salazar
