If you bought Monero [XMR] at its August top so far, you would be down by roughly 11.5% at its $153.55 press time price.
And, if you purchased it at its bottom in June, you would still be up by roughly 58%. These outcomes depict Monero as a healthy option for riding the bullish recovery wave after the May and June crash.
But is it still a good option for the next outcome?
A look at Monero’s past performance may help formulate a decent conclusion. A comparison might also be useful. For example, Bitcoin’s pullback took six days while Monero’s took only three days.
This underscores XMR’s resilience against the bearish pressure, even though it did eventually yield to the selling pressure.
Monero’s monthly top represents a 79.8% upside from its bottom in June.
This means it outperformed Bitcoin which managed a 42.08% rally from June lows to August highs.
More importantly, XMR manages to bounce back quickly every time it suffers a crash.
Its press time price was already up by 11% after bouncing off the 0.236 Fibonacci level.
The strong recovery is another sign that investors are optimistic about XMR.
At press time, it was undervalued compared to Bitcoin considering their circulating supplies and price levels.
This healthy demand makes it a good pick in case of another crash, as well as during a rally as it has already demonstrated.
Monero’s price outlook
Monero is already recovering after the latest crash. However, some investors suggest that the rally from June to July was a relief rally and that prices will drop lower.
Perhaps its on-chain metrics may help provide a clearer view of what to expect. Its upside in the last two days was backed by surprisingly low volumes.
The low volume suggests that the upside might be supported by whale accumulation. In fact, XMR has managed to maintain a relatively healthy sentiment in the derivatives market.
The Binance funding rate pulled back slightly compared to its pullback in the second week of August.
The sentiment confirms that XMR stands to garner strong demand if it experiences another crash.
Furthermore, Monero’s social dominance metric dropped substantially in the last 10 days.
A spike in social dominance may help to sum up more volumes and potentially support a more robust price move.