Analyzing the aftermath of Monero’s exploit
- After details about Monero’s exploit were released, its price plummeted.
- After XMR’s price dropped, its Open Interest followed suit.
Monero [XMR] recently fell victim to an exploit that caused the loss of millions of dollars. Generally, such exploits stir up negative sentiment around cryptos, which causes their prices to plummet. However, the case with XMR was different.
Monero took a blow during the hack
As reported earlier by AMBCrypto, Monero experienced a severe attack on the 1st of September. Though the incident took place over two months ago, its details were released recently.
According to the report, the hacker(s) made away with 2675.73 XMR belonging to the Monero Community Crowdfunding System (CCS). The token moved were worth nearly $43 million at the time of the exploit.
During the initial days of the hack, the token’s price chart turned red as its price plummeted. But then, things started to move sideways.
Is Monero finally reviving?
While the chaos around the hack settled, XMR’s price action gained upward momentum as its value shot up by over 10% last month. As per CoinMarketCap, XMR was trading at $166.05 with a market capitalization of over $3 billion.
But things changed in the last 24 hours, as its value dropped by nearly 2%. Regardless, the future of the token may hold good news for investors.
Notably, DYOR.net, a crypto screening platform, took to X (formerly Twitter) on the 6th of November and revealed that a bullish divergence was spotted on the XMR/USDT Relative Strength Index (RSI).
This looked promising, as such situations suggested the possibility of a hike in a token’s price.
$XMR / USDT – Bullish divergence on RSI spotted on 1h
📈 Live chart: https://t.co/qLunvee7tS
— DYOR.net Crypto Screener (@DyorNetCrypto) November 6, 2023
AMBCrypto analyzed Monero’s daily chart to get a better understanding of what might lie ahead. As per the analysis, most market indicators still remained bearish. For example, the MACD displayed a bearish crossover.
Monero’s Money Flow Index (MFI) registered a downtick and was headed towards the neutral mark at press time. However, the Chaikin Money Flow (CMF) remained high, which could help XMR’s price rise.
Read Monero’s [XMR] Price Prediction 2023-24
Upon further inspection, AMBCrypto came across a few metrics that might actually kickstart another XMR bull rally. For example, even as XMR’s price dropped slightly over the last few days, its Open Interest also declined by a minimal margin.
Whenever the Open Interest drops, it increases the chances of a trend reversal. Therefore, considering all the indicators and metrics, it will be interesting to see which direction XMR’s price moves in the near term.