Monero, like the majority of other altcoins, has had a solid climb over the last week. Apart from the overall market's ability to maintain its upward trend, another key component played a role this time around. A few days ago, Monero's mainnet activated the BTC-XMR atomic swap.

Atomic swaps enable users to exchange or swap their cryptos in a completely decentralised manner, without the intervention of third parties. Monero, already the premier "privacy coin" in the cryptocurrency industry, has enhanced its secrecy.

The pricing effect

Monero's valuation began to rise immediately once the swaps went live on the network. Indeed, XMR's valuation was approaching a two-month high at the time of press. As illustrated in the accompanying chart, the token's price fell below the 200-day simple moving average between 17 and 19 August. After the twentieth century, however, the trend reversed. The price has remained above that level ever since.

Notably, Monero is currently confronted with two minor resistance levels of $295.26 and $309.78. If these levels are successfully crossed in the coming hours, XMR's price might hit $350 before the end of this month.

Are the indicators favourable for a rally?

Yes, almost certainly. For starters, the current volatility level (0.63) appears to be ideal for Monero's climb to continue. While high volatility is typically associated with big price swings in both directions, low volatility tends to favour long-term rallies. Surprisingly, when Monero's volatility fell from 0.78 to 0.6 last month, its price surged by almost 13%.

For that matter, the transaction count has increased significantly in the macroeconomic framework. The number of transactions between June and July used to fluctuate between 13k and 20k. However, it crossed the 30k mark numerous times in August. In the case of this alt, an increase in transaction volume has always corresponded to a price increase. As a result, this is another evidence of progress.

Likewise, the trade volume followed a similar pattern. Monero's real-world volume reached a one-month high of $144 million on August 20. Increased volume is not always indicative of increased demand for the token. The increase in circulating supply, on the other hand, confirms the same this time around.

According to Messari's research, Monero's circulating supply increased significantly in less than two days, from $4.5 billion to $5.1 billion. Again, it is at a one-month high at the moment. As a result, it may be concluded that a greater number of tokens are currently circulating among market participants.

Additionally, social attitude is still favourable at this moment. Reddit, for example, has been steadily increasing its subscriber base on a daily basis. This effectively signifies that the rally has the support of the Monero community. On any given day, having a strong social sentiment is a plus.

What are the future prospects?

By examining the situation of the aforementioned measures and the trend on the price chart, it is possible to conclude that present market conditions are normally favourable to Monero's price climb. After weeks of consolidation in the $200 range, the time has come for Monero's valuation to exceed $300, and possibly even $350.

Support us!