The Monero price has been in recovery mode recently after it dropped by 40% in February to a low of $171. Today, the XMR price is trading at $265, which is 54% above the February 23 low. Its market cap has risen back to $4.65 billion but its ranking has dropped to 28.
What happened: Monero is a popular cryptocurrency that is known for its strong encryption and privacy. Unlike Bitcoin whose transactions can be tracked, Monero transactions can never be tracked because of this encryption. Indeed, the IRS has offered a large bounty for anyone who manages to crack this code.
In the past few months, however, demand for Monero and other privacy-focused tokens has waned. Indeed, Dash and ZCash have moved from being the largest cryptocurrency projects in the world to being ranked at 45 and 60, respectively. Other popular altcoins like Cardano, Theta, and Polkadot have taken their place. So, what next for Monero?
On the daily chart, we see that the XMR price has been recovering lately and is now just a few points below the important resistance level at the all-time high of $287. It is also slightly above the two ascending trendlines and the moving averages.
Similarly, the MACD has moved above the neutral line. Therefore, in my view, it is just a matter of time before the Monero price retests its all-time high. Any move above this price will mean that bulls have prevailed and possibly push the price to $300. However, a drop below $220 will invalidate this trend.
