Hoskinson’s announcement threat or opportunity for Monero?- XMR price could suffer

Charles Hoskinson announced a possible launch of privacy protocol on ADA.
The price may be affected inversely.
The volume increased by more than 78%.

The privacy-protocol-based platform, Monero (XMR), got a new competitor in the market, as was announced by Charles Hoskinson that Cardano could launch a new privacy protocol. As per the reports, the later-mentioned platform is planning to launch a privacy base protocol, which kind of resembles the Monero protocol but may be better.

This could come as a big threat as it would be a more dynamic version of what Monero offers. The entry of a new competitor means Monero is now on thin ice and needs to take corrective action to transform this threat into an opportunity and reclaim its monopoly over the privacy field in the crypto-verse. This could also mean that Monero will have to increase its functioning and improve its efficiency, which could be an exhausting task as where to improve could be the biggest question and finding an answer to it will not be easy.

The char-t-ale

The price trend formed is a rising parallel channel, with prices seeking to fall near $120, respecting the previous swing. The action, as mentioned earlier, could be glimpsed at the time of the official launch of the ADA protocol, when the prices will be the true mirror of the users’ sentiments. The volume also falls comparatively in the bigger period but rises by more than 78% in the past 24 hours. The XMR price currently performs above all the critical EMAs but may very soon fall, taking all along.

The current price pattern influences CMF to slope down but still hold a position in the positive zone, indicating the fall is yet to come. The MACD indicator records depleting buyer bars with both lines functioning above the zero mark, which explains the increased trading volume. The RSI indicator slopes down from the higher range in the neutral zone, hinting at increasing sellers.

The 4 hour POV

The price in the closer time frame escalates slightly but majorly moves horizontally. The CMF indicator drops below the baseline to the negative zone, showing the genesis of the down trail. The RSI indicator also falls near the half line, with the slope descending to the lower ranges. The MACD knots and turns neutral with a cyclic transition from buyers and sellers, but both are highly active as the lines float above the zero-histogram mark.

Conclusion

The forthcoming threat can be rubbing a sword on the wound caused by the recent crash. The future of XRM is in a dilemma, and the holders are losing hope which is very well reflected in the price patterns of the native coin of Monero, XRM. They need to soon come up with a strong strategy that can transition the threat into an opportunity for the platform, which is about to lose its USP.

Technical levels

Support levels: $120 and $105

Resistance levels: $155 and $165

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing