What Monero’s northbound momentum tells you

• Monero’s price moved northward one week after the blockchain released its latest network update.
• XMR’s trading volume also increased, and a few market indicators looked bullish.

Monero [XMR] witnessed a considerable increase in its social activity in the last 24 hours. The uptrend was not only limited to its performance on the social front, but it was also reflected on the coin’s price chart. This happened a week after the blockchain released its last network upgrade, making Monero more stable. However, will a hike in social activity be enough for the blockchain to maintain its price trajectory? 

Read Monero’s [XMR] Price Prediction 2023-24

Monero is getting back on track

CryptoDep, a popular X account that posts updates related to cryptos, recently revealed in a tweet that XMR’s social engagement reached 625 thousand in the last 24 hours on 20 August. Not only that, but the coin also had an Altrank of 12, which was a bullish signal.

The growth in popularity was reflected well on the coin’s price chart, as its value increased by more than 2% in the last 24 hours. According to CoinMarketCap, at press time, Monero was trading at $147.63 with a market capitalization of $2.7 billion. Additionally, its one-day trading volume also shot up by 30%, acting as a foundation for the price hike.

Apart from popularity, another possible reason behind this uptrend could be the last network update that the blockchain pushed on 13 August 2023. The update brought along several new features, such as an upgrade to its Bulletproof algorithm to make it Bulletproof+.

This reduced typical transaction size by nearly 5-7 % and also made transactions lighter and faster while improving typical verification performance by 5-7%.

However, despite the recent hike in price, the blockchain’s mining sector witnessed a decline. This was evident from the drop in XMR’s hashrate, suggesting an outflow of miners since July 2023. 

Source: 2miners

Should Monero investors have high hopes?

Though the price trend looked promising, a few of the metrics were concerning. For instance, XMR’s funding rate turned red. This meant that derivatives investors were reluctant to buy XMR at a higher price. Additionally, its open interest also dropped slightly, which was a negative signal. 

Source: Santiment

How much are 1,10,100 XMRs worth today       

Nonetheless, a few of the market indicators remained bullish. For instance, after entering the oversold zone, the Relative Strength Index (RSI) gained upward momentum, which can help push XMR’s price further up.

Additionally, its MACD also displayed the possibility of a bullish crossover in the days to follow. Unfortunately, the Chaikin Money Flow (CMF) continued to favor the bears as it remained considerably below the neutral mark.

Source: TradingView