There are a lot of fantastic coins in the crypto market. Isn't it fair to say that we're all puzzled about our options at this point? On a more positive note, we've noted that monero has recently become one of the most popular cryptocurrencies. Monero, or XMR, is beginning to rise and is establishing an uptrend, according to crypto experts.
Whether the token will make a big move if the current momentum is followed?
Believe it or not, the overall reception indicates that XMR is a viable digital asset to store value during wild downward swings. Also keeping in mind that a cryptocurrency's victory lies in its features and not store value, we can still conclude that Monero can be a good pick due to its anonymity and security.
And if you notice, the token is ahead of other cryptos and is showing an uptrend on its daily chart too. It comes as no surprise that Monero has now become everyone's favorite privacy coin as it features full anonymity.
In comparison to other phenomenal and traditional cryptocurrencies like Bitcoin and Ethereum, the privacy feature itself makes Monero look cool! If you have watched the token for quite a while, you might have also noticed the XMR sell-off that was initiated in May 2021.
Yet following the sell-off, Monero has been trading sideways for over six months. At this point, crypto enthusiasts and investors must figure out whether the token has some potentially big move in store for us.
So once this big triangle pattern resolves can we expect the token to pump up?
Let's analyze the price charts to get a deep insight. The XMR monthly chart indicates that a potential boost-up is on its way. Whenever a price dip was experienced below 21 EMA, the token has managed to find support.
On upbeat, the squeeze indicator indicates that the momentum expresses a low-compression monthly squeeze. If the pattern concern is resolved to the upside, then it can cause a potential and massive breakout.
However, it's possible that the pattern would take a few weeks or months to resolve and turn out promising. In a crypto world, a bullish rally can be initiated out of nowhere. According to the momentum oscillator, at present the momentum is neutral. Above the midline, both slow momentum and fast momentum lines have occupied a stance.
The fast momentum line is just behind the slow momentum line. On a favorable note, the fast momentum line is bringing in a positive divergence aiming to move past the midline and the slow momentum line. On the weekly chart, the squeeze indicator expresses that the token is currently in a medium-compression squeeze.
Based on the weekly chart, the bearish trend is calming down and the token is trending sideways. You can also see that the moving averages are driving sideways. Amid the market washout, Monero exhibiting an optimistic momentum is a cherry on the top. XMR is indicating a monthly squeeze.
On the other hand, inside the monthly squeeze weekly squeeze is also maturing. So a small momentum change can initiate a series of actions that will start favoring the breakout. The price coming to test a particular level multiple times in a row within a short span signals that the bull party will begin soon. Better watch out before you miss out on the entry to the bull party!
On that note, it's better to remarkably contemplate whether you will invest in XMR or not! Since last June, the average 20 periods of volume have been steadily giving out a bull signal. According to analysts, XMR is currently considered an outperformer to the market.
Eventually, when the entire market boosts up, it is the outperformers that develop the tendency to lead first. Notably, the big triangle formation seen on the chart is maturing. So on a long-term note, it may take some time for the token to play out.
If a shift in the pattern is not experienced, then the triangle consolidation will eventually get resolved within this quarter. After analyzing the token's performance, we can infer that the key technical levels are looking pretty promising. So we can say that XMR is one of the most underrated digital assets.
A major fear that has slipped into the privacy crypto world is delisting fears. We have already seen multiple red flags encompassing the privacy coins. A couple of months back in November, one of the major crypto exchanges Kraken concluded they will delist Monero for European countries.
However it's also crucial to have enough liquidity for price discovery when a digital asset is surging up, Monero is particularly bulletproof to any such delistings. Federal authorities itself tried to get a foothold on Monero since its inception. It's proof that the token has enough anonymity and security to attract crypto hustlers.
In November 2020, the IRS took the idea of control to another level. They even offered $625,000 as a reward for anyone who would crack Monero. Even though Chainalysis claimed they had succeeded in cracking Monero, later it was proved false.
So, guys, you can think for yourself why all the hustle and buzz encompassing the token is particularly rising.
Are the security and anonymity encompassing the token Overhyped?
Naturally, you all might be thinking whether all this buzz is just a work of netizens spreading the type of response they want from the crypto investor world. At this point, we need to know that despite all the herculean efforts, no one could get their hands on that bounty or Monero.
Riccardo Spagni, the lead developer of the token says that all these attacks similar to the Sybil attack that took place in 2020, anyhow total to at most a "best guess heuristic" and no one could so far prove a link between a node and a transaction on Monero demonstrably.
So why is it that no one could succeed?
Transactions on monero bounce off several individual nodes. So before one of them spreads and reaches the network, the mechanism makes it impossible to figure out the IP address behind these transactions. It means that nodes can potentially recognize IP's, but it's all in vain as it's impossible to figure out the right IP address.
It's obvious that one can't guess their way into the whole secret setup of Monero. Yet all of this could be lessened by running your own Monero node like many users. Sounds complicated? Fret not, Monero makes it nearly easy for all users to operate the network. And when you run your node, you are directly in a bulletproof yet peer-to-peer open monetary network.
The cryptocurrency uses highly advanced technology and has a codebase. The Ring CTS which was supposed to be incorporated into the Bitcoin network is also used in Monero. In a nutshell, you can say that Monero has dedicated and highly engaged Cryptographers in the world making it a great and secure crypto community.
Over the years, Transaction growth on Monero has skyrocketed and data looks very bullish. An interesting remark that Monero has got is that Monero is what Bitcoin noobs thought they bought. In many ways, the crypto world has accepted that Monero is better than Bitcoin. It just proves how highly underrated Monero is.
The hash rate of Monero constantly surging up is another good sign. As a bonus, the upgrades and development pitching in are constant. Something huge is brewing up for the network, Thorchain! Monero integrating Thorchain will be huge for the network and if it works out, it will potentially take the token to major zeniths shortly.
Monero acts as a digital asset to store value much like bitcoin and gold. However, unlike gas tokens, governance tokens, utility tokens, or Bitcoin, Monero is fungible. It also possesses the hard money value that the mighty bitcoin is proud of. So to make the best use of Monero, you must hold XMR.
