Monero gets Binance backing, but should XMR traders go long

Monero [XMR] performed impressively over the last 24 hours with a 6.28% uptick. On the previous day (10 August), the XMR price was $159 as per CoinMarketCap.

At press time, it was trading at $168.16, drawing attention and possibly on its way to another solid performance like it did in July.

Before now, Monero had been involved in several proposals—making moves to transition from one network to another. Additionally, the private cryptocurrency made its network upgrade a priority. On 20 April, Monero announced that it was due for a hard fork despite some delays.

No splits, only support

After finally deciding on 13 August for the hard fork to take place, Monero received an excellent development concerning it. Binance, the world’s largest crypto exchange, declared that it would support Monero’s cause. 

#Binance will support the @Monero $XMR network upgrade & hard fork.https://t.co/0s0j47ZLQd

— Binance (@binance) August 11, 2022

According to the statement released on the exchange blog, Binance said its users should expect a hold on XMR deposits and withdrawals during the process. It assured traders and XMR HODLers of maximum security of assets and a resumption once the upgrade was complete. 

However, the hard fork was not aimed at creating a split or a new cryptocurrency out of XMR.

The Monero team cleared the air that its objective was v0.18 Fluorine Fermi software via block 2,688,888. At press time, it seemed like Monero was actively preparing for the event as the hashrate (computational power to mine XMR) was at 2702.4 Mh/s. 

So should XMR investors expect any impact on the coin’s price during or after the upgrade?

Indecisive

Based on the XMR/USDT chart, one can figure out that the coin struggled to follow a clear-cut direction.

The Directional Movement Index (DMI) revealed this position. Although the +DMI (green) remained above the -DMI (red), the ADX (yellow) showed a weak direction movement as it was below 25.

Despite the buyer having the edge in the meantime, as the XMR price could get more uptick, a further ADX decline could reverse the trend. 

Source: TradingView

Interestingly, XMR investors may have been preparing for the upgrade as it draws nearer. This is because both the On-Balance-Volume (OBV) and Chaikin Money Flow (CMF) showed positive signs. 

The CMF revealed that the money flow favored the buyers as it remained above zero, indicating a bullish volume momentum. Similarly, the OBV suggested that the buying pressure increased with an increasing volume and price. 

So XMR’s chances of going the green way during the upgrade may be stronger than its chances of a price decrease.

Investors should, however, observe if there are any contrary updates as it could affect the potential price movement.