Monero price was not spared in the recent crypto sell-off. The privacy-focused coin dropped to $172 on Wednesday as the overall crypto-sell-off continued. The coin’s price has bounced back in line with that of other coins. It is trading at $295, which is about 72% above the lowest level on Wednesday. It has a market cap of more than $5.2 billion.
The background: Cryptocurrencies are highly correlated currencies. When the biggest coins rise, the rest tends to follow. This was seen on Wednesday this week when the prices of most cryptocurrencies crashed. It was also seen on Thursday when their prices bounced back. Therefore, Monero is rising as investors rush to buy the dips. Also, they are betting that there is still more demand for these currencies. So, what next for XMR prices?
The four-hour chart shows that the Monero price has staged a major recovery in the past 24 hours. The recovery has been so strong that the currency has moved above the 78.6% and 61.8% Fibonacci retracement levels. In fact, it is currently hovering at the 61.8% retracement level. Also, the price is attempting to move above the 25-day and 15-day exponential moving averages (EMA).
While it is too early to tell, since the currency has moved above the 61% retracement is a sign that bulls are gaining momentum. This could see the price rise to the 50% retracement level at $345. However, a drop below this week’s low at $172 will invalidate this trend.
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