Privateness-focused cryptocurrency Monero (XMR) rallied by practically 9.5% up to now week in contrast with the crypto market’s decline of 8.5% in the identical interval. What’s extra, the XMR/USD pair has damaged above a powerful, multi-month resistance trendline, hinting at extra upside forward.
XMR worth motion
XMR’s worth was down by a modest 0.87% on April 10 from its two-month-high of $245 established a day earlier than. Nonetheless, the cryptocurrency nonetheless outperformed its high rivals, together with Bitcoin (BTC) and Ether (ETH), on a weekly timeframe.
Speculations about entities utilizing Monero to bypass sanctions may have boosted its enchantment amongst traders. In the meantime, The American analysis group Brookings warned final month that Monero, the primary within the line of privateness cash, could possibly be “used as a part of a sanctions-evasion scheme.”
“Because of the difficulties in monitoring and tracing the people concerned in privateness coin transactions,” Brookings defined.
“The IRS has supplied funds of $625,000 to those who can crack the privateness protections of Monero, Zcash, and different such cryptocurrencies.”
Monero’s market capitalization has risen by nearly 85% to $4.30 billion since February. Whereas technical indicators counsel that it may develop additional within the second quarter.
XMR market cap since February. Supply: CoinMarketCap
Technical breakout in play
This week, XMR broke above a downward sloping trendline that had been capping its upside makes an attempt since Could 2021.
Curiously, the trendline constitutes what seems to be a bull flag sample, together with a parallel decrease trendline performing as help. A primary tenet of bull flags is that they ship the worth within the path of its earlier uptrend (known as “flagpole”) after it decisively breaks to the upside.
XMR/USD weekly worth chart that includes ‘bull flag’ breakout. Supply: TradingView
As a rule, bull flag’s upside goal is usually the sum of the breakout level and the flagpole’s peak. That places XMR en path to nearly $480, up nearly 110% from at present’s worth close to $235.
On longer timeframes, nevertheless, impartial market analyst Don Yakka argues that XMR worth may attain as excessive as $10,000 if a basic “cup-and-handle” sample performs out.
XMR/USD every day worth chart that includes cup and deal with sample. Supply: Don Yakka/TradingView
Cup-and-handles are bullish continuation patterns with the “cup” representing a U-shaped worth development, together with a interval of sturdy correction adopted by an equally decisive restoration, and the “deal with” resembling a consolidation indicator, corresponding to a “flag ” or a “pennant.”
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A cup-and-handle sample resolves after the worth breaks above its resistance stage. The breakout goal is measured after calculating the sample’s most peak and including it to the breakout level.
Nonetheless, privateness cash like Monero proceed to face draw back dangers resulting from growing regulatory strain from a number of governments around the globe.
The views and opinions expressed listed here are solely these of the creator and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer includes danger, it’s best to conduct your personal analysis when making a choice.
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