Monero price prediction as XMR sits above key support

The Monero (XMR/USD) price has been under intense pressure in the past few days. It has declined in the past two straight days and is trading at $205. This price is about 60% below the highest level in 2021 while its total market capitalization has crashed to about $3.6 billion, making it the 46th biggest cryptocurrency in the world.

Monero review

Monero is a blockchain project that was started by Nicolas van Saberhagen in 2014. His idea was to improve Satoshi Nakamoto’s vision, especially on privacy.

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One of the biggest challenges that Bitcoin faces is that its transactions are public. This means that it is possible to track the source and destination of transactions. For example, in 2021, the Federal Bureau of Investigation (FBI) managed to track the wallet where the Colonial Pipeline ransom was stored.

Therefore, Monero developers solved this challenge by creating a blockchain platform that is significantly private. It uses advanced encryption technology to ensure that transactions cannot be tracked.

As a result, Monero has found a major utility value in the darknet industry. A closer look at most dark-web marketplaces shows that Monero is the preferred option for most users.

While Monero has a strong utility value, its price has not done well recently. It has crashed by over 60% from its highest level in 2021. Most notably, its ranking among cryptocurrencies has also jumped. At its peak, it was among the top 15 biggest coins in the world.

Other privacy-focused cryptocurrencies have also struggled lately. For example, Dash is now the 90th biggest coin while ZCash is the 82nd biggest coin. 

It is unclear why these privacy coins have underperformed but some analysts cite the fact that they are not “sexy” enough for investors.

Monero price prediction

The daily chart shows that the XMR price has been in a strong bearish trend lately. A closer look at the chart reveals that it found a strong support at around $180. It has struggled to move below this level several times since July last year.

The Monero price is also below the 25-day and 50-day moving averages. Therefore, at this point, the outlook of the XMR is neutral with a bearish bias. More declines will be confirmed if the price manages to move below the support at $180.