The price of Monero (XMR) is trading above $100 at the beginning of October and the technical picture implies that the price may advance again above $110.
Fundamental analysis: Chainalysis won the contract to break Monero security
Investors in Monero should have in mind that this is a still very risky cryptocurrency but now could be a good time to trade Monero (XMR). The transaction volumes of this cryptocurrency are expected to increase and once this happens, the price of Monero will be at higher price levels.
Monero has advanced from $94 above $112 this trading week and the current price stands around $101. Monero is a cryptocurrency with a focus on anonymity and it is designed to protect the privacy of a sender (or receiver) of coins.
What makes Monero so special is its use of ring signatures via its open-sourced protocol known as CryptoNote. Ring signatures act as a group of signers in a joint bank account, but in this instance, the actual signer remains unknown.
A very good team stands behind this project, the fundamentals of this cryptocurrency are steadily improving but there’s still a level of uncertainty surrounding the project. The internal revenue authority (IRS) has announced last week that blockchain intelligence firm Chainalysis won the contract to break Monero security.
It is also important to mention that Texas-based blockchain analytics firm Integra FEC will be part of the project. The Internal Revenue Service offered up to $6250,000 to contractors that provide a proof-of-concept that can crack the security on Monero.
The initial $625,000 contract will help these two companies to transform their prototype into a functional theory in the next eight months.
Technical analysis: Bulls are focused on breaking the resistance level at $110
Monero has advanced over 35% in less than thirty days and the current price stands above $100 psychological level.
Data source: tradingview.com
On this chart, I marked important resistance and support levels. The important support levels are $100 and $90, $110 and $120 represent the resistance levels.
The trend line also represents the strong support level and if the price breaks this trend line it would be a very strong “sell” signal. As long the price is above this trend line this crypto is in the “buy” zone and there is no indication of the trend reversal.
If the price jumps above $110 it would be a signal to buy Monero (XMR) and we have the open way to $112. Rising above $115 supports the continuation of the bullish trend and the next price target could be located around $120.
On the other side, if the price falls below $90 it would be a “sell” signal and we have the open way to $80.
Monero has been moving in uptrend last three months and for now, there is no signal of the trend reversal. The price of this cryptocurrency extended its correction from the recent highs above $112, registered last Thursday but the technical picture implies that the price may advance again above $110.