A strong exception in the current market situation, Monero (XMR) is moving against the broader downturn plaguing the market. According to CoinGeckoMonero has gained nearly 13% since last week, putting the coin under the spotlight as one of the strongest gainers in the bear market.
Related Reading
Monero’s simplicity lends itself to its focus on privacy and reliability, providing great value to both investors and users of the platform. This has led to Monero’s semi-autonomous price movement, which may continue despite the bearish nature of the market.
Monero usage increases on CoinCards
Gift card provider CoinCards recently released some statistics about cryptocurrency usage on its platform. According to the platform, Monero holds a monopoly over Bitcoin in usage. This huge usage is due to Monero’s simplicity and utility, which has caught the attention of analysts at X.
Although the market is overwhelmingly bearish, analysts are optimistic with predictions about XMR’s future performance.
“While everything else seems pre-mortem, the privacy coin is hitting higher and higher lows and higher highs. Total decoupling from the market,” he said Crypto Van Der Lindea cryptanalyst on the X platform.
Although Binance and Kraken have delisted XMR from their clients, the token still has a large user base that is primarily concerned about their privacy. With more individuals considering privacy as a core issue, we may see cryptocurrency users using XMR despite the drawbacks of slow transaction times.
Rally slows down
At the time of writing, Monero is sitting squarely within the $170 to $174 trading range, giving bulls an excellent position for further upside potential. However, the bear market has spilled over into the XMR market, slowing long-term gains.
XMR’s low correlation with Bitcoin makes the coin more attractive to investors who are scouring the market for profit-generating cryptocurrencies during bear markets. The relative strength index (RSI) shows that while the coin has bullish momentum, XMR bulls are close to exhaustion in the short term.
Related Reading
The coin’s trading range is quite weak as bears are gaining momentum to negate short-term gains. In the long term, however, it appears that XMR bulls will rest and gain momentum before another attempt to regain lost ground.
As things stand, XMR is forecast to breakout to $190 in the short term, providing a support level for the bulls to prepare for a strong upward move. Following this move, investors and traders can target $200 in the long term.
However, if XMR succumbs to the bearish market momentum, the coin could retrace its steps towards $164, with further losses possible in the near term.
Featured image from Chainalysis, chart from TradingView
