Monero, like most other altcoins in the cryptocurrency space, has seen a strong surge in the last week. The market has become positive, which is assisting Monero’s rise. The fact that the BTC-XMR atomic swap became live on Monero’s mainnet just a few days ago is also a consideration.
Atomic swaps allow users to swap or exchange their cryptos in a completely decentralized manner without the intervention of third parties. As a result of the upgrade, the privacy coin has become a little more secret.
Effect on the price
Monero’s value increased as a result of the trades. Monero’s value has risen to a two-month high at the time of writing. The crypto token’s price plummeted below the 200-day SMA between 17 and 19 August, as shown in the charts. After the twentieth century, however, the trend reversed. The price has been above it since then.
Monero is currently encountering two minor resistances, $295.26 and $309.78. Nothing can stop the token from surpassing $350 before the end of the month if it can break through these two resistance levels in the coming hours.
Are the indicators pointing to a rally?
The answer is almost certainly yes. For starters, the current volatility level (0.63) appears to be ideal for maintaining Monero’s surge. A price swing in both directions is indicated by high volatility. Low volatility, on the other hand, is beneficial during protracted rallies. Surprisingly, when Monero’s volatility dropped from 0.78 to 0.6 last month, its price soared by nearly 13 percent.
Within the Macro framework, the number of transactions has also increased. Between June and July, the number of transactions stayed in the 13k-20k range. Several times in August, the total topped 30,000. In the case of this alt, a rise in transaction count has always accompanied a rise in price. As a result, this is yet another encouraging indicator.
A similar pattern was observed in trade volume as well. Monero’s actual volume hit a one-month high ($114 million) on August 20. Increased volume does not always imply that market participants are buying tokens. The increased circulating supply, on the other hand, indicates that people are purchasing the tokens.
According to Messari data, Monero’s circulating supply has increased dramatically from $4.5 billion to $5.1 billion in just two days. Its present levels are once again at a one-month high. As a result, the fact that more tokens are circulating among market participants at this time may be coincidental.