Monero Coin (XMR) – Forecast Summary
Monero Forecast: Q1 2021
Price: $180– $260
Price drivers: Symmetric Pattern Breakout
Monero Forecast: Q2 2021
Price drivers: Bullish Engulfing, EMA Support and MACD Crossover
Monero Forecast: 1 Year
Price drivers: Double Top Resistance, Bearish Correction
Just like Bitcoin and Ethererum, the cryptocurrency Monero has also shown a dramatic bullish trend recently. Considering the performance of the past month, the XMR/USD pair has gained +$ 42.73, soaring nearly 30.94%, to trade at $ 195. Over a period of six months, the XMR/USD pair has gained +$ 72.46 or 66.86%, which is a gain of +$ 114.73, or 173.54%, on the yearly time-frame. Currently, the XMR/USD Live Price chart suggests that Monero (XMR) is trading at $ 198. The market cap of Monero is USD 3,653,624,934, and currently, 17,837,278 in XMR is circulating.
Recent Changes in the Monero
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For the newbies, Monero (XMR) is a cryptocurrency that concentrates on being untraceable and private. In a few key ways, the design is different from Bitcoin, but it can be understood as a cryptocurrency like Bitcoin. It can be used to buy and sell things, and it can be exchanged for other coins or tokens. As already mentioned, the Monero XMR coin focuses on privacy and anonymity, so transactions with XMR coins can be fully anonymized, like physical cash. Monero was created in 2012, and it is a fork of the Bytecoin blockchain, which was initially named Bitmonero.
Is Monero a Good Investment in 2021?
According to our forecasts, the Monero (XMR) is likely to trade bullishly, and it’s price is expected to surge sharply, like its peer cryptocurrencies, Bitcoin and Ethereum. Currently, the price of the Monero is $ 193.42, but by the end of 2021, the Monero price is expected to soar to the $ 460 level.
Why Buy the Monero (XMR)?
Monero has a market capitalization of approximately 2.553 Billion, and it is ranked 14th among all cryptocurrencies by market cap. This is why the users are confident of its prospects for further development. And besides that, the Monero, like other cryptos, should be evaluated as more than just a payment method.
Here are some significant advantages of Monero:
Secrecy – Secrecy is seen as one of the key advantages of the Monero XMR coin. One-time addresses and ring signatures enable senders and recipients to cover up their transaction routes. With Monero, users are assured that their purchases and transfers are secured from public leaks. Apart from this, transactions made with the Monero are also safe from hackers. If a hacker does manage to find out the specific addresses of one of the parties, the system member could deny the transaction due to obfuscation.
Security – The proof-of-work system and blockchain make it possible to exclude transaction spoofing or serious DDoS-attacks. Monero (XMR) software runs on Mac, Windows, Android, Linux and FreeBSD.
Investment potential – In addition to being a cryptocurrency, Monero (XMR) is also a great investment tool. Let me remind you that the value of the Monero (XMR) increased from $ 1 to $ 300 between 2016 and March 2018. Since it was created, the value of the crypto has risen by 8,900%. This is why many top experts suggest that XMR should be used for investment portfolios, since it is one of the most reliable and confidential cryptocurrencies.
Strong community – No cryptocurrency will ever be considered unpopular as long as a community of miners, pools, users and developers exist. It is worth reporting that many developer groups are currently involved in creating and implementing new project features. Miners and ordinary users are also involved in discussing Monero’s future. More interestingly, hundreds of thousands of users worldwide use XMR every day, making the daily trading volume excellent.
Transaction speed – This one is my favorite; the average time to transfer coins from one address to another just takes 2 to 30 minutes. When talking about the Bitcoin network, the transfer time could be as high as two-hours (with a slightly loaded mempool). Monero is a reliable alternative to modern banking transfer systems with a high level of privacy.
Low commissions – The commission does not surpass 0.05% of the amount transferred. Traditional wire transfers, on the other hand, may cost up to 1% or even more.
XMR/USD – Factors Impacting the Monero Coin (XMR) Price
These impacting factors will help you understand the market and predict periods of growth or decline, based on current events. The predictions are typically based on the principles of technical analysis. Despite this, we should all understand different factors that can impact the price of a particular asset, which in turn, enables us to make sensible investment decisions, based on changing events.
Let’s take a look at the three most important factors that can affect the price of Monero Coin:
1- Supply and Demand:
The relationship between supply and demand could be considered a key factor that will always influence the price of Monero Coin. It is also worth noting that the relationship between supply and demand is itself dependent on many different factors. In simple words, the price of an asset will decrease if the supply is greater than the demand, and conversely, it will increase if the demand is greater than the price.
1: Transaction Cost (PoW / PoS)
2: Reward System
3: Mining Difficulty (Hash Rate)
4: Coin Circulation
5: Forks (Rule Changes)
2 – Stock Markets:
There are several types of news or events that influence the cryptocurrency markets, either negatively or positively.
Let me share some key points:
i) Regulations: Governments worldwide are beginning to understand cryptocurrencies as either legal assets or actual currencies. In this way, they are classifying them and experimenting with regulatory measures for the fledgling asset class. Regulatory measures in crypto’s largest markets are bound to set prices off. Regulatory measures that would restrict the use of digital assets are usually taken badly by the market.
ii) Security Breaches: The digital assets field is famous for security violations by teams of hackers who make large amounts of money in this way. Thus, the perilous state of cryptocurrency markets typically sends prices from support level to support level whenever any news becomes known regarding hacking.
iii) Current Affairs: When modern investors enter the digital assets space, this news also plays a key role in influencing digital asset prices. More people are starting to hedge into cryptos, in order to secure their value from the uncertainty presented by traditional systems.
3 – Interest Rate
Since cryptocurrencies do not give investors interest payments, rising interest rates tend to make the digital currency less appealing to market traders. If the Federal Reserve sets higher interest rates, the cryptocurrency prices tend to be undermined, as market investors move their money out of speculative investments. It is worth mentioning that the stronger US Dollar has historically hurt the value of cryptocurrencies, and an interest rate hike will only serve to boost the USD.
Technical Analysis – XMR/USD Trades Symmetrical Triangle Pattern – Brace for a Breakout
Currently, the XMR/USD pair is trading with a strong bullish bias near the $ 200 level, and the technical side of the XMR/USD also seems pretty bullish. The XMR/USD pair has formed an upward channel on the daily timeframe, which is expected to provide resistance around the $ 210 level. The closing of a three white soldiers pattern on the daily time-frame supports a strong bullish bias among investors; however, the MACD and RSI suggest that Monero has entered the overbought zone. It should exhibit a bit of correction ahead of further continuation of the bullish trend. Thus, the XMR/USD pair may retrace back until the $ 177 (38.2%) Fibonacci level, before placing any additional bullish bets. On the other hand, a breakout at $ 177 could extend a bearish correction until the 61.8% Fibo level of $ 157. On the higher side, a bullish breakout at $ 210 could drive buying trends until the $ 287 level.
XMR/USD – Daily Chart – Upward Channel Set to be Violated
The XMR/USD pair has closed a symmetrical triangle pattern that is extending resistance at the $ 200 level on the monthly time-frame. Considering the recent bullish price action, the XMR/USD is likely to close a bullish engulfing candle on the monthly time-frame, and if this happens, we may see a continuation of a bullish trend in the XMR/USD pair. On the higher side, a bullish breakout at $ 200 could drive sharp buying in the XMR/USD pair; however, the pair should close a few candles outside the symmetrical triangle pattern, to confirm the breakout of the pattern.
XMR/USD – Monthly Chart – Symmetrical Triangle Pattern in Play
The leading and lagging indicators, such as moving averages, RSI and MACD, support a buying trend on the monthly time-frame. Currently, the XMR/USD market price is trading near $ 200, holding over the 50 periods EMA, which suggests a buying trend. Moreover, the MACD and RSI values are also holding within a buying zone, over 0 and 50 respectively, suggesting a strong bullish bias among traders. A bullish breakout at the $ 200 level could open further room for a buying trend for the XMR/USD pair, until $ 470, by the middle of 2021, and later, during the second half of the year, and we might see a bearish correction in the XMR/USD until the $ 270 range.
For the year 2021, let’s brace, keeping a closer eye on the fundamental side of the market, to capture any change in XMR sentiments. Good luck!