XMR is currently down 1.19% in the past 24 hours. It is trading at $171.36 on the trading board. However, it has surged 0.41% in the past 7 days and 10.96% in the past 24 hours. This drop comes at a time when the market is in a bull run following the Federal Reserve's announcement of a 50 bps interest rate cut. Although this shows a move in the opposite direction, crypto enthusiasts believe that this is just a minor correction phase on the way to a further recovery.
Factors known to affect the price of XMR include demand for the token, market sentiment, and the health of the cryptocurrency market.
First, Monero's native token also follows the basic supply and demand mechanism: if demand is high, the price of XMR will go up, and if investors are unwilling to make new purchases of the token, the price will go down. The same basic principle applies when it comes to supply: to control the price, there needs to be an excess supply; otherwise, limited supply could cause price imbalance. This theory assumes that those with the financial means will seize limited market resources.
Market sentiment is not doing well for XMR right now. The token is falling at a time when overall market sentiment is bullish. Not only has the Federal Reserve made the biggest cut in lending rates, but it has also hinted at the possibility of two more cuts by the end of this year, i.e., 2024. For reference, there are still three months left in the year. Further cuts would boost investor confidence in exploring risk assets such as the cryptocurrency segment.
Finally, let’s consider market health, which primarily refers to the availability of liquidity. This factor is an extension of the previous point, since liquidity is determined by the size of funds invested in a market (in this case, the cryptocurrency market).
Regardless of how XMR has performed over the past 24 hours, it has set the stage for a positive future for 2025 and the years that follow. Monero Price Prediction XMR is predicted to hit $251.30 by the end of this year, i.e., the end of 2024. Subsequent predictions put it over $500 by the end of 2025, which is almost double the maximum predicted value for 2024.
This is in line with short-term predictions: over the next 30 days, XMR could rise by 27.30% from its current value to $218.35, meaning the long-term outlook for Monero’s native token is positive and bullish.
Volatility is another factor that can have an impact. In the case of XMR, volatility tends to be high. The token's current volatility is at a low of 2.60% with an FGI of 49 points. The 14-day RSI is around 55.79.
