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- Monero (XMR) has recorded a 50% surge in just 24 hours to hit a new yearly high after futures open interest skyrocketed to its highest since December 20, 2024.
- With a Relative Strength Index (RSI) reading of 83, the price is expected to cool off before beginning another run to around $345.
In a January update, CNF discussed the possibility of the privacy coin Monero (XMR) surging by 50%. Today, the asset has validated that analysis, rising by the same margin to a new yearly high.
According to our market data, the price surged from $227 to $339 in just a day, supported by the 24-hour trading volume, which had also recorded a whopping surge of 449% to $284 million. At press time, the price had receded to $279.
Why the Sudden XMR Price Surge?
Researching the reason for this explosive run, CNF discovered that the recent potential theft involving the asset triggered a significant increase in interest, forcing XMR to climb up the price curve.
As disclosed by ZachXBT, around 3520 BTC ($330.7M) was transferred from a victim’s wallet some hours ago. Soon after, this amount was swapped for XMR, causing the price to skyrocket.
XMR’s Open Interest (OI) then shot up to its highest point since December 20. According to Coinglass data, its futures OI increased from $20.13 million to $30.38 million on various exchanges.
On its technical side, XMR broke above an ascending triangle formation on the 24-hour price chart. Analysts believe that this pattern was formed by two trendlines that drew from mid-November 2024. Basically, this signals a bullish run. The degree of increase is also measured from the “distance between the first daily high and the daily low breakout point.”
From the current price, XMR could steadily decline to $241, cooling off from the sudden run. Fascinatingly, the asset is expected to take another rebound from that level to a resistance level at $345. The only hindrance is that most traders could take a profit at $300, according to analysts.
XRM’s Relative Strength Index (RSI) has also exceeded the overbought territory, sitting at 83 at press time. Historically, this implies that the price could take a nosedive. Meanwhile, the strong bullish momentum suggests a possible hold.
Macroeconomic and Other Factors Fuelling Growth
Commenting on the overall growth of the crypto market, Partner at HashKey Capital, Jupiter Zheng, has disclosed that XMR and Bitcoin’s sudden reaction could largely be linked to the decision by US President Donald Trump to soften the tariff policies. As noted in our earlier post, some analysts have suggested that the impact of the trade war could, in either case, be good news for the crypto market.
Bitcoin has maintained a relatively stable range above $92k as Trump’s administration softened tariff policies of the crypto industry. This crypto-friendly attitude can boost Bitcoin and other cryptocurrencies to develop their own market direction, less correlated with US equities, and enable more growth and innovation in the industry.
Apart from this, Monero’s adoption is also playing a crucial role in its price. As discussed earlier, a hotel in Georgia has started accepting payment in XMR, underscoring the rising confidence and its role as a medium of exchange.
