- Monero price soared to a five-month high of $265.
- Monerun is continuing as holders rush to withdraw their tokens.
The Monero jumped to the highest level in five months as demand for privacy tokens like Zcash and Decred soared. The XMR token rose to a high of $265, which was the highest level since November. It has risen by about 100% from its lowest level this year. As a result, its total market cap has jumped to over $4.8 billion.
Monerun continues
The main reason why the Monero price has jumped is because of an unofficial event known as Monerun. This is an ongoing event where most holders are attempting to withdraw their coins from exchanges.
According to subreddit posts, the concern is that many exchanges don’t actually hold the Monero that customers have purchased. As a result, this coordinated withdrawal is intended to force exchanges like Binance, OKX, and Coinbase to buy monero in a bid to push its price higher.
There are also concerns that many exchanges actually trade or invest their customer’s Monero coins. This process is possible because of the significant privacy features that have been added to Monero’s chain. Unlike Bitcoin, Litecoin, and other coins, Monero uses an obfuscated ledger, which is hard to verify. In a note, Binance said:
“We have an internal monitoring system to handle the reconciliation to ensure that the blockchain balance is the same as the system balance.”
Monero price has also been rising as investors continued focusing on privacy coins as signs of widespread cyber activities rise. On Monday, Decred price jumped by more than 30%. Similarly, Zcash price has risen by more than 13% in the past 24 hours while Dash has risen by over 5%.
Monero price prediction
So, should you buy Monero? On the daily chart, we see that the XMR price has been in a strong bullish trend in the past few weeks. The coin managed to move above the descending trendline shown in yellow. It also managed to move above the important resistance level of $251, which was the highest point on January 2.
The coin has moved above the 25-day and 50-day exponential moving averages (EMA) while the Relative Strength Index (RSI) has been in a bullish trend. Therefore, the coin will likely keep rising as bulls target the key resistance at $300.
