Monero Price Prediction – XMR Eyes $489.50 As Bulls Regain Control
Highlights:
- Monero is consolidating between the $388.24 resistance and the $372.07 support
- Rally through the $388.24 resistance could send Monero to $489.59 short-term
- The perception that Monero is now undervalued could trigger a rebound
Monero (XMR) is in the green today, making it one of the few cryptocurrencies showing signs of a rebound. In the last 24 hours, Monero has gained 3.45% to trade at $389.18. However, intraday trading volumes have dropped slightly in the previous 24 hours. They are down by 8.3% to stand at $113.96 million. A drop in volumes when the price is showing minor gains could signal that new buyers are still sitting on the sidelines. This can be due to the manner in which the cryptocurrency market has been acting lately.
Altcoins have been pumping randomly, drawing in buyers, then dumping back to pre-pump prices, or even lower. As such, new investors could be waiting for a confirmation that Monero indeed has momentum. On a more positive note, the volume decline could mean that those holding Monero are in for the long haul. As such, they are not waiting for intraday gains or losses to sell their XMR. Looking ahead, there is every indication that Monero could continue to make gains, even if it’s small incremental steps.
XMR Action Not Tied to Broader Cryptocurrency Market
One of the factors likely to help sustain the Monero rebound is the fact that it is not tied to the broader cryptocurrency market. The average altcoin moves in the overall direction of Bitcoin, just at an accelerated rate. If Bitcoin goes down as it has recently, altcoins crash by double digits. While Monero is not 100% immune from such price action, it has increasingly shown price independence.
This is due to the fact that it is not listed on major exchanges. As such, Monero’s value is tied directly to people using it for everyday transactions. This is a big deal as it makes Monero the only cryptocurrency that is valued based on real demand and not speculation. Such a reality also means Monero is less prone to extreme downside volatility.
By extension, it is likely to draw in more investors going into the future, both for the growth potential and capital safety. This is especially the case now when the broader cryptocurrency market is showing signs of weakness, due to fear-driven trading.
Monero Trading At A Discount After Recent Correction
XMR also stands to benefit from the perception that it is trading at a discount. Monero recently braved broader market weakness and went on to make an all-time high close to $800. It has since experienced a heavy correction to its current prices below $400. This was mainly driven by profit-taking after an impressive run, as speculators moved to find the next big thing.
However, now that the speculative wave has calmed down, the price is stabilizing. Thanks to growing adoption in privacy-focused real-world transactions, the price could rebound gradually. Such could attract investors who believe the leverage flushout makes it undervalued, and that it could soon retest the all-time highs it recently set. Such perception of undervaluation is part of the reason Monero is showing positive intraday signals even as the rest of the market remains overall weak.
Technical Analysis – XMR In Intraday Consolidation After Selloff
After a selloff earlier in the day, Monero bears appear to have lost momentum. Monero is now consolidating between the $388.24 resistance and $372.07 support. If bulls take control and push Monero through the $388.24 resistance, and with high volumes, a rally to $489.59 could follow.
Source: TradingView
On the other hand, if XMR bears take control and push the price through the $372.07 support, a correction to prices as low as $300 could follow. Of these two scenarios, a rally to $489.59 is more likely. This is due to a price stabilization across the market and the fact that Monero has real demand driving its price action.
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