Privacy-centric cryptocurrency Monero has claimed the spotlight as the biggest gainer in the market on Thursday, surging by 5% within a 24-hour period amidst a broader crypto market slowdown.
In the midst of a challenging market environment, Monero's bullish trend is becoming more pronounced, setting the stage for a potential continued uptrend.
Monero's Upward Climb Shows Strong Bullish Momentum
Maintaining a consistent position above an upward-trending support line since December 9, XMR has shown remarkable resilience, with only a brief dip below the trendline before bouncing back and resuming its upward trajectory. This pattern highlights the solid defense put up by bulls around the $220.74 support level.
An upward trendline, reflecting a positive trajectory in asset value, signifies an uptrend where each successive low point is higher than the previous one, indicating increasing market demand.
This trendline not only provides crucial support but also signifies potential for further upward movement as long as prices remain above the line.
Moreover, amidst a general market stabilization, Monero's futures market indicates a preference for long positions over short ones. The long/short ratio currently stands at 1.05, according to Coinglass, underlining a prevailing bullish sentiment among traders.
Forecasts Predict Potential Price Surge to $289 for XMR
Looking at the daily chart, XMR's Relative Strength Index (RSI) is on an upward trajectory at 58.53, underscoring the heightened demand for the altcoin.
The RSI serves as a crucial indicator of market conditions, with values above 70 signaling overbought conditions, while values below 30 suggest oversold conditions that could lead to a rebound.
With the current RSI at 58.59 and trending upwards, Monero appears firmly in a bullish territory, where buying pressure outweighs selling pressure, potentially propelling the price towards $289.11, a level last seen in April 2022.
However, a reversal in market dynamics could jeopardize Monero's recent gains, potentially pushing the price below the key support level of $220.74 anchored by its ascending trendline.