- Monero price has risen over the past two months
- Increase in long-term investment and decrease in liquidation lead to market stability
Monero, the market-leading privacy-focused cryptocurrency, has not seen any significant movement on the charts over the past seven days, although XMR has fallen by over 3% in the past 24 hours, according to CoinMarketCap.
At the time of writing, the altcoin was trading at $171 and saw its trading volume surge by over 7.60% in the past 24 hours.
Looking at the bigger picture, it looks like the altcoin is trying to test the nearest resistance level on the charts.
Source: XMR/USDT, TradingView
Are bullish indicators a sign of…?
Think about it: in the past two months, cryptocurrencies have risen by over 70% in terms of price, which is why the altcoin is currently trading at close to $170. This means that there is a sustained upward trend on the charts, which is a bullish sign for the market.
In fact, at the time of writing, the market is flickering a reversal pattern with a hammer at the bottom of the current market trend, seemingly signaling a bullish rejection by buyers, which could prove beneficial given the market's decline over the past 24 hours.
Source: Coinglass
That's not all: several indicators support a possible reversal of fortunes.
For example, according to Coinglass, XMR’s weighted funding rate indicates sustained medium sentiment, which is a sign of market stability. The main inference to be drawn from this result is that conditions are ripe for another uptrend to gain momentum on the charts.
Source: Coinglass
Additionally, it is worth checking the liquidation levels of XMR on both long and short positions, which reveals that the market is at an indecisive level.
Moderate liquidations from both long holders and small investors who suffered losses are a sign of a stabilizing market. For example, in the past 24 hours, liquidations of $2.39k were recorded on long positions and $1.89k on short positions.
Similarly, the CMF reading of 0.14 indicates the presence of buying pressure, suggesting a higher rate of accumulation at the upper end of the range.
XMR/USD. Source: TradingView
What's next for XMR?
Various indicators have been showing a sustained upward trend for the past two months. Based on various indicators, the price is also showing a bullish trend.
Combined with buying pressure across the privacy coin market, we expect Monero to test and even break through the most recent resistance levels on the charts.
