The Monero price was not left behind in the recent cryptocurrency rout. The XMR is trading at $246, which is about 20% below the highest level on Monday. It has a market cap of more than $4.4 billion, according to data compiled by CoinMarketCap.
What happened: The recent price action of Monero has been relatively surprising. The coin has dropped by more than 52% from its all-time high. This is despite some good news for the coin. For one, the number of ransomware attacks around the world has increased.
Just last month, Colonial was forced to pay more than $4 million to Russian hackers. Other companies that were recently hacked are a leading American meat company and a ferry operator. And yesterday, it emerged that the FBI had managed to transfer funds that were paid during the Colonial Pipeline hack.
While this was bad news for Bitcoin, some analysts see an opportunity for Monero and other privacy-focused coins. They argue that it would have been impossible for the FBI to track funds sent to the hackers because of its advanced encryption.
Still, the decline in Monero price provides further evidence about the correlation of cryptocurrencies. In most cases, they all fall further when Bitcoin falls and vice versa.
The daily chart is not looking good for XMR price. The coin has dropped by more than 50% from its highest level this year. Notably, it has also dropped below the 50-day and 100-day moving averages, which is a sign that bears have taken over. It has also fallen below the 61.8% Fibonacci retracement level, which is usually a bearish sign. It also seems to be forming a small head and shoulders pattern.
Therefore, the coin will likely keep falling as bears target the next reference level at $172, which was the lowest level on May 19. However, a jump above the 100-day EMA will invalidate this trend.
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