The Monero price has retreated from its highest point on Monday as the strong crypto rally takes a breather. The XMR has dropped to $220, which is about 57% below the year-to-date high and about 25% above the lowest level last week. This brings the total market value of the coin to more than $3.9 billion, making it the 26th biggest coin in the world.
Monero news. Monero is the biggest privacy coin in the world. It was developed as a private and more efficient alternative to Bitcoin. Today, Monero’s privacy credentials are well-known considering that it is a widely-used coin. Unlike BTC, XMR is an untraceable cryptocurrency that has been embraced widely in the dark web. It has also been requested by many ransomware players like REvil.
Like all cryptocurrencies, the Monero price crashed two months ago as worries about regulation, higher interest rates, and China crackdown intensified. Because of the strong correlation among cryptocurrencies, the coin also rebounded last week. The resurgence happened after the US real yields declined below 0% and after Amazon expressed its interest in the coin. Today, the XMR price has retreated in sync with other coins.
A quick look at the weekly chart shows that the recent drop of Monero price was not by accident. As shown below, this drop happened after the coin jumped to an all-time high of $477. As a result, this decline is part of the coin’s cup and handle formation. In price action, a cup and handle pattern is usually a sign that the price will resume the bullish trend. We see that the handle formation ended when the coin declined to $156.
Therefore, there is a high probability that the coin will bounce back and retest the all-time high of about $477. This pattern will be invalidated if the price manages to move below the support at $156.
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