Monero (XMR) Price Action and Potential Breakout Analysis

Monero (XMR) Price Action

Markets are known for falling rapidly and rising slowly, a trend exemplified by the price action of the privacy-focused cryptocurrency Monero (XMR) this year. In early February, XMR plummeted over 35% to $100 after Binance, the top cryptocurrency exchange, delisted the token due to not meeting its standards. It took four months for XMR to recover this decline, briefly reaching above $180 last week, the highest since January 23.

Potential Reasons for Price Surge

The recent price surge of XMR, gaining nearly 25% in four weeks, has outperformed most top 100 cryptocurrencies. While the exact cause is unclear, speculation points to the crackdown on Botnet mining in certain European countries as a contributing factor. Botnet mining, a malicious practice of using compromised computer networks for cryptocurrency mining, has long favored XMR due to its privacy features, making it hard for law enforcement to trace illegal funds.

Golden Cross and Potential Breakout

Although XMR has recovered from the February drop, it is still within the $100-$185 trading range of the past two years. However, there are indications of a potential breakout. The golden cross, where the 50-day simple moving average crosses above the 200-day SMA, hints at a long-term bullish momentum shift. This suggests the possibility of a breakout in the near future for XMR.