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- BTC-XMR atomic swap and bullish sentiments helping the surge in values
- Monero values have surged to a two months high
- Monero is facing two mild resistances $295.26 and $309.78
Like most of the other altcoins in the cryptocurrency arena, Monero also saw a good rally over the past week. The market has turned bullish, and it is helping the surge of Monero. However, another factor coming into play is that the BTC-XMR atomic swap went live on Monero’s mainnet a few days back.
The Atomic swaps enable users to swap or exchange their cryptos without the involvement of third parties in a completely decentralized manner. Therefore the privacy coin has now become a little more private due to the upgrade.
Impact on price
The swaps had a positive impact on the Monero valuation. At the time of writing, the Monero values have surged to a two-month high. As is evident from the charts, the crypto token’s price tanked below the 200-day SMA between 17-19 August. However, the trend managed to reverse itself after the 20th. Since then, the price has remained above it.
In the present situation, Monero is facing two mild resistances, $295.26 and $309.78, at this stage. If the token can breach these two resistance levels in the coming hours, nothing can stop it from crossing $350 by the end of this month.
Are the metrics favoring a rally?
In all probability, the answer is yes. The present volatility level (0.63), for starters, seems to be perfect for sustaining Monero’s rally. High volatility is indicative of a price swing in both directions. On the other hand, low volatility is helpful in long rallies. Interestingly, when the volatility of Monero dipped from 0.78 to 0.6 last month, its price ended up surging by about 13%.
The transaction numbers have also surged within the Macro framework. The number of transactions between June and July remained within the 13k-20k range. In August, the figure rose to 30k quite a few times. As far as this alt is concerned, the increase in transaction count has always coincided with its price rise. Ergo, this is another positive sign.
A somewhat similar trend was seen with trading volume also. On 20 August, Monero’s real volume stood at its one-month high ($114 million). A rise in volume does not always lead to market participants buying the tokens. However, the rising circulating supply confirms that participants are buying the tokens.
Messari data reveals that there has been a steep surge in Monero’s circulating supply from $4.5 billion to $5.1 billion in just a matter of two days. Its current levels, again, are at their one-month peak. Ergo, it can be incidental that more tokens are circulating among market participants at this stage.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
