(Updated January 03, 2021) —Created in April 2014, Monero is a privacy coin that allows private, untraceable transactions that are unlinkable and resistant to analysis. Currently trading at $55 XMR price has lost over 84% of its value from its all-time high established in December 2017.
Monero (XMR) begun 2019 trading at around $46. Its price would steadily rise, managing to peak at about $120 by mid-June. However, that was as good as it got for the privacy-focused cryptocurrency.
The second half of the year saw a slow decline with XMR ending the year at around where it had begun. However, less than two weeks into 2020, XMR price is on the move again, and this time on the upwards. Its up 26%, and this momentum is expected to continue as the year grows older as users seek to keep their transactions anonymous.
In this piece, we are going to take a look at a few reasons why XMR price is likely to rise from expert opinions to the latest developments and technical analysis of the charts. Let’s go into expert’s opinion on XMR price.
Experts’ Opinion On Why XMR Price Will Rise
For years, the cryptocurrency community has praised Monero for demonstrating legitimate development work and innovative privacy features for its users. As such, the coin’s rise in value has always been expected. XMR price currently sits at number ten on the crypto charts with a market cap of over $1 billion. Let’s take a look at why expert’s think Monero’s price is bound for greater heights.
The coin received a major boost from Peter Todd, a reputable Bitcoin Core developer, who stated that he prefers Monero over other digital currencies since it is a genuine crypto. He went on to say that the coin offers better privacy, it’s built on some real development work. It provides better security and privacy solutions.
John McAfee also gave a positive prediction regarding Monero. While he did not provide an exact Monero price prediction, he stated that the platform has the potential to challenge Bitcoin as a leading digital currency. He has been very vocal in support of Monero in several interviews and through several tweets.
Additionally, Riccardo Spagni, a core developer of the cryptocurrency, stated that the digital currency was developed to safeguard user’s privacy. As such, this feature has led to its widespread use by criminal hackers. This extensive use may see the coin’s price increase in the future.
Other factors influencing XMR price include;
Monero’s Strong Community Steps Up
Despite becoming more reputable by the day, the cryptocurrency community is still plagued by bad actors, malware and scammers. On a deeper level, some traditional institutions have expressed concern over cryptocurrency being used for illicit means, such as money laundering and funding illegal operations.
On the back of such concerns, community members from market-leading privacy coin Monero (XMR) are looking to launch an initiative to combat common crypto scams.
The initiative announced on Monero’s official site by Justin Ehrenhofer comes from a community with a vested interest in changing the public perception of certain coins. The same reasons that Monero has attracted a large number of advocates also invites concern from others.
Due to its private, untraceable nature, Monero has become a favorite for scammers. A recent report showed approximately $175 million in Monero had been mined by “cryptojacking” programs. The number is far more than any other coin, and represents more than 5 percent of the total circulating supply of XMR. This could definitely affect XMR price.
In Ehrenhofer’s announcement, he stated the accessibility of Monero’s mining algorithm was a positive thing, but unfortunately opened itself to bad actors.
“While the vast majority of users take advantage of these features for good, some attackers use Monero to earn money from machines without users’ consent. They may run miners on webpages that activate without a user’s consent. They may infect machines or hide it in other packages and run mining software. They may infect machines, encrypt the local files, and demand a ransom payment in Monero. The Monero community condemns this malicious, non-consentual use of equipment to mine.”
The community initiative to combat malware comes in the form of an educational website, with advice provided by a community-driven group called the Monero Malware Response Workgroup. The site will provide diagnoses and action plans for Unwanted In-Browser Mining, Unwanted System Mining, and Ransomware attacks.
Users can access the group’s content at https://mrw.getmonero.org/
Further positive Monero news comes from ViaBTC, which has launched a Monero mining pool that comes with a 50% reduction in mining fees for the first three months of subscription.
Monero (XMR) Price Prediction TradingView Analysis Updated January 03, 2021
For the XMR cryptocurrency, we see that it might be possible for it to move towards the $100 region. In recent days, the virtual currency has been falling due to the FUD around some delistings in the United States. According to the analyst, after breaking down the 100 MA, the pattern will be confirmed. However, the 100 MA has not yet been broken.
In addition to it, he considers that the Fibonacci projection or sell zone is going to be at $127 per coin. This could take some time before we reach this level considering that the coin could continue falling in the near future. The potential reversal or buying zone is between 114 and 100 and the Fibonacci projection or sell zone is at 127 and 156.
For the one hour chart, the trader sees different situations for the XMR digital asset. He considers that the XMR virtual currency is completing its final leg of Gartley and it could enter a new reversal zone. According to what we see in the charts, the virtual currency has definitely reversed from 159 USDT and reached 152.5 USDT a few hours ago.
Now, there is a very important resistance level that worked as support before. We are talking about the zone that is currently located close to 155 USDT. The sell zone determined by the trader was between 155.32 and 156.73 USDT.
The XMR chart looks good for this analyst. The digital currency has been moving higher in an ascending channel that started in September and that was tested many times during the last months.
According to the analyst, there is some uncertainty for this cryptocurrency due to the situation we are currently experiencing for Bitcoin. We could easily see a new dip down that would push the entire market down, once again.
Fortunately for the analyst, XRM has the advantage of being one of the oldest privacy coins in the market. This is why the price of this digital currency trends with BTC. Thus, we are highly dependent on what XMR can share with us in the coming months.
For the XMR/USDT trading pair, the analyst expects Monero to finish its second corrective wave after a first positive move upwards. This correction is for accumulation purposes. Many traders are going to be adding more XMR to their positions in this correction.
Regarding the third Wave, the target could be around $210 or $230 USD. However, this may take several months before it plays out. On the short-term scale, the 4h chart is going to be a good way to measure and analyse the waves inside of the third Wave.
Finally, the analyst considers we should pay close attention to BTCs all-time high and how this digital currency could behave in the coming months.
As per the analyst, the current rapid growth experienced by XMR price was caused due to the news related to a hard fork. This hard fork took place on 17.10.2020 and the update was successful. This hard fork allowed the network to process faster transactions. At the same time, user anonymity was increased.
Another fundamental aspect shown by the analyst was that some BitMex users decided to withdraw XMR digital assets rather than Bitcoin (BTC). This has pushed demand for XMR up. Now, the trader sees that it is important for XMR to correct the rapid growth experienced and the first target is between $97 and $100. The second and more global target is around $75.
Over the past two years, fundamentals show active and continued incremental upgrades that have helped reduce transaction costs, improved custody solutions, transaction efficiency, and blockchain pruning.
All these improvements, coupled with the above bullish expert opinions and technical analysis, predict a bright future for XMR price. With the current reset as the market prepares for the next rally, it would be wise for any investor to get their hands on some XMR. Follow our detailed guide here to learn how to buy XMR on Binance.