Monero Price Prediction: Why XMR Could Hit $1000 Soon
Highlights:
- Monero is trending higher, making higher lows in a bullish channel
- The key level to watch is the $500 resistance
- A breach of $500 could pave the way for a rally to prices as high as $1000
Monero (XMR) is in the green, on a day that most cryptocurrencies are in the green. At the time of writing, Monero was trading at $458.50, up by 3.69% in the day. Monero trading volumes have shot up by 51.67% in the day to stand at $133.84 million. Such a surge in trading volumes alongside the price is a positive indicator that Monero demand is on the rise. As such, the price could keep pushing higher going into the short to medium term. There are a couple of factors that support a continuation of the price action that Monero has exhibited intraday.
ZCash Issues Driving Investors to XMR
One of them is the issues surrounding ZCash. Recently, there has been an investor push towards privacy coins. ZCash, being the most accessible one on top exchanges, has benefited a lot from this demand. Last year, ZCash rallied by over 500% in a matter of weeks. However, issues have emerged in ZCash after the entire core team left due to management issues.
At the same time, there are allegations that the ZCash team is currently dumping millions of tokens in the market. This has triggered a selloff in ZCash, and most of this capital is flowing into Monero. As the crisis in ZCash deepens, Monero could rally to new highs in the short term. That’s because the underlying demand for privacy coins is strong regardless of the unraveling happening at ZCash.
Monero Getting More DEX Listings
Besides the new demand from investors fleeing ZCash, Monero access is getting better. Monero faced a series of delistings from major exchanges a few years ago. This not only triggered fear-driven selling but also made it harder for new investors to buy Monero.
However, this is changing as more DEXs now start to offer Monero trading pairs. The best part is that a lot of these DEXs do not require KYC for investors looking to buy Monero. The result has been an upshot in demand and, by extension, the price. As Monero becomes increasingly easier for the average investor to buy, the price could hit new highs.
Monero Has A Reputation For True, Reliable Privacy
XMR is also rising due to strong internal dynamics. Monero is one of the best privacy coins in the market today. For years, it has prided itself as one of the only truly fungible cryptocurrencies in the market. It carries the original idea of what a cryptocurrency should be, to date. This is a big deal as the world enters an era where privacy is increasingly becoming hard to achieve, all thanks to all manner of surveillance.
As people continue to demand digital privacy in their daily lives, cryptocurrencies that offer it will continue growing. Monero has a head start on this front because it has the tech, given that it was delisted from CEXs for its privacy. It is also a well-known cryptocurrency, having been around since the early days of the market. As such, a new user or investor looking into privacy coins is likely to look to Monero first.
Technical Analysis – XMR Making Higher Lows In a Bullish Channel
Monero has been on an uptrend for weeks, making higher lows along a bullish channel. This is a strong indicator that every slight dip in the price is quickly bought up. If this trend continues, the key level to watch in the short term is $500. A rally through $500 could pave the way for a Monero rally to $1000 in the foreseeable future.
Source: TradingView
On the other hand, if there is a correction and Monero breaks the bullish structure, a correction to the $259.81 support could follow. Of these two scenarios, a rally through $500 is more likely. This is due to the underlying demand for privacy coins and the fact that Monero is absorbing capital from investors fleeing ZCash.
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