Is Monero Going to Zero? XMR Price Drops 3% as Viral New Bitcoin Mining Project Surpasses $4 Million Milestone
The XMR price has dropped by 3% in the past 24 hours, slipping to $160.91 on a day when the cryptocurrency market as a whole gains by 2.5%.
Monero is also down by close to 4% in the past week and by 6% in a fortnight, with the privacy coin gaining by only 9% in the last 30 days.
This performance contrasts poorly with many other major tokens, with XMR’s status as a privacy coin potentially meaning that traders will neglect it during any forthcoming bull market.
However, there are alternative tokens for big, above-average gains, with new stake-to-mine platform Bitcoin Minetrix set to have a very big listing in the next few weeks.
As XMR’s chart illustrates, its indicators are starting to show considerable weakness, as if the coin is at the beginning of medium-term dip.
In particular, its relative strength index (purple) has fallen from around 70 at the start of November to nearly 40 today, signalling considerable selling pressure.
It’s also notable that XMR’s 30-day average (yellow) has flattened out after several weeks of climbing, implying that it’s now on its way down, along with the XMR price.
Having said that, it should provide some comfort that the privacy coin’s support level has been rising since October.
This could mean that any losses in the next few days may be slight, and that XMR may begin rising again along with the rest of the market.
However, XMR hasn’t risen as strongly as other major tokens during the recent rallying, while the revelation of a hack on its community wallet has also recently damaged faith in the coin.
Since we don't know who did the #monero CCS hack, they should just donate all that back to Monero general fund and look like a hero. We wouldn't know if that was the thief. Everyone is happy!
— Vik
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