Will Monero [XMR] be able to rally amid recovering broader crypto sentiments
Monero (XMR) turned out to be one of the best cryptocurrencies for those looking to ride the recovery wave after the May crypto crash. The cryptocurrency jumped onto a healthy bullish trend while the rest of the market struggled to bounce back. However, the cryptocurrency is off to a good start this week, with some upside allowing it to hold on to recent gains.
XMR rallied by rally 75% from its latest local low on 12 May. The impressive bullish performance appears to have experienced resistance near the 0.236 Fibonacci line, peaking at $208. The resistance resulted in a slight retracement towards the end of last week. Fortunately, the bulls returned to the market during the weekend, aiding XMR’s recovery from a weekly low of $173.35 on Saturday.
XMR traded at $194.85 at press time, after rallying by 11% in the last two days.
It seems XMR’s price drop from above $200 was triggered by some profit-taking. This manifested in the form of outflows registered by the MFI, briefly pushing the RSI below the neutral level before a quick recovery. It also looks like the outflows are tapering out, aided by re-accumulation during the weekend.
Can Monero bulls maintain their ongoing bullish charge?
Monero’s social dominance and social volumes are still within healthy levels and they explain why it is still delivering an impressive performance. Healthy social engagement means XMR has a decent amount of socially active traders or community. However, both metrics experienced a slight drop in the last 24 hours, presumably due to the shift of social interest towards Bitcoin’s weekend rally.
XMR nevertheless managed to maintain an uptick even as the social metrics took a bit of a hit. The supply held by whales also saw a significant drop from 47.32% to 47.09% in the last 24 hours. Despite this, the price maintained an uptick during the same period, suggesting that retail traders managed to absorb the shock. This aligns with the uptick in the Binance funding rate metric in the last 24 hours, suggesting that there is healthy interest in the derivatives market.
XMR will likely not be able to maintain the bullish momentum if the whales are selling. However, the global market cap increase in the last three days suggests that the bulls might be back for some time. If this is the case, then the return of the bulls might signal more upside for Monero in the days to come.