- There is still a level of uncertainty surrounding the Monero project
- Internal Revenue Service is seeking a tool that can be used to trace privacy coins like Monero
- As long the price of Monero is above $80 this cryptocurrency is not in the “sell” zone
- If the price jumps above $100 it would be a signal to buy this cryptocurrency and we have the open way to $110
The price of Monero (XRM) has advanced from $61 above $105 in less than three months and the current price stands around $88. Monero is still far away from the XRM price predictions but if the price jumps again above $100 that could be a very good opportunity for the short-term traders.
Fundamental analysis: There’s still a level of uncertainty
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Monero price has been moving in uptrend last three months and for now, there is no signal of the trend reversal. Monero is a cryptocurrency with a focus on anonymity and it is designed to protect the privacy of a sender (or receiver) of coins.
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What makes Monero so special is its use of ring signatures via its open-sourced protocol known as CryptoNote. Ring signatures act as a group of signers in a joint bank account, but in this instance, the actual signer remains unknown.
A very good team stands behind this project, the fundamentals of this cryptocurrency are steadily improving but there’s still a level of uncertainty surrounding the project. We can also not forget that regulations on the cryptocurrency market can actually be a threat to this cryptocurrency.
According to the latest news, the Internal Revenue Service is seeking a tool that can be used to trace privacy coins like Monero. The IRS is offering up to $500,000 to contractors that provide a proof-of-concept that can crack the security on Monero.
Investors in Monero should have in mind that this is a still very risky cryptocurrency but now could be a good time to trade Monero (XRM). It is also important to mention that the price of Monero is correlated with the price of Bitcoin and investors in this cryptocurrency should also have Bitcoin on their “watch list”. Bitcoin has found strong support above $10 000 and some analysts believe that BTC may start trading higher in the upcoming days which is positive for Monero.
Technical analysis: Bulls are focused on breaking the resistance level at $100
When trading Monero, you should have in mind that the price could also weaken in the upcoming weeks.
On this chart, I marked important resistance and support levels. The important support levels are $80 and $70, $100 and $110 represent the resistance levels. If the price jumps above $100 it would be a signal to buy this cryptocurrency and we have the open way to $110.
Rising above $110 supports the continuation of the bullish trend and the next price target could be located around $130. On the other side, if the price falls below $80 it would be a “sell” signal and we have the open way to $70.
Summary
Monero is a cryptocurrency with a focus on anonymity and it is designed to protect the privacy of a sender (or receiver) of coins. A very good team stands behind this project, the fundamentals of this cryptocurrency are steadily improving but there’s still a level of uncertainty surrounding the project. Monero price extended its correction from the recent highs above $105, registered in the third week of August. There are some obvious risks when it comes to buying Monero currently but if the price jumps above $100 it would be a signal to buy this cryptocurrency and we have the open way to $110.