Like the rest of the cryptocurrency market, Monero (XMR) has found itself caught in a downward spiral as Bitcoin recently hit a fresh two-month low after a wave of risk aversion swept through world markets.
Monero (XMR) has weakened more than 15% since the beginning of August 2023, falling from $163.56 to a low of $135.81. The current price of XMR stands at $142.53, and the risk of another decline still persists.
But where is the price of Monero (XMR) going next, and what can we expect from the rest of September 2023?
Today, Crypto Lists will discuss XMR price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.
Monero has a focus on anonymity
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- 1 Monero has a focus on anonymity
- 2 Monero (XMR) price is usually tied to the market
- 3 Technical analysis for Monero (XMR)
- 4 Important support & resistance levels for Monero (XMR)
- 5 What speaks for the rise in the Monero (XMR) price
- 6 What indicates the downfall of Monero (XMR)
- 7 What do analysts and experts say?
Monero is a cryptocurrency with a focus on anonymity, and it is designed to protect the privacy of the sender (or receiver) of coins. Monero uses cryptographic techniques like ring signatures, confidential transactions, and stealth addresses to obfuscate the sender’s address, receiver’s address, and transaction amounts.
This makes it challenging to trace and link transactions on the Monero blockchain, providing a high degree of privacy for its users. It is important to say that Monero operates on a decentralized blockchain network, meaning that it doesn’t rely on a single central authority, and transactions on the network are verified by miners who use their computational power to secure the network.
Aside from its privacy features, Monero works similarly to other major cryptocurrencies, using proof-of-work mining to control the issuance of XMR and to incentivize miners to add blocks to the blockchain. Monero has an active and passionate community of users and developers, and it has gained popularity among organizations and individuals who prioritize privacy and anonymity in their cryptocurrency transactions.
While its privacy features are attractive to many users, they have also raised concerns among regulators who worry about its potential use for illicit purposes. It’s important to note that while Monero provides strong privacy features, it’s not entirely immune to all forms of analysis, and its use should always comply with relevant laws and regulations in your jurisdiction.
Monero (XMR) price is usually tied to the market
The price of Monero (XMR) is usually tied to the overall cryptocurrency market, which remains under pressure after Bitcoin hit a fresh two-month low after a wave of risk aversion swept through world markets. Cryptocurrency market can be highly volatile, and prices can fluctuate rapidly, and while efforts were being made to stabilize the market, fluctuations are still expected to be a common occurrence.
Investors should continue to take a defensive investment approach in the weeks ahead, while “short” traders should keep Bitcoin on their watchlist while placing a short position toward the area. Benjamin Cowen, an analyst and founder of Into The Cryptoverse, thinks Bitcoin will likely maintain a downside trajectory in September, and when the price of Bitcoin drops, that usually has a negative influence on the price of XMR and on the rest of the cryptucerrency market.
September has a reputation for being a historically weak month for stocks and riskier assets, and the September Effect is a supposed market anomaly whereby investment returns are relatively weak.
There are also expectations of “some market turbulence” from looming recession concerns and macro uncertainty, while many analysts expect that the U.S. central bank could keep interest rates at restrictive levels for a longer period. The effect of the 2022 crypto price crash, U.S. inflation growth, and interest rate hikes haven’t diminished from the market yet.
Technical analysis for Monero (XMR)
Monero (XMR) has weakened from $170.21 to $135.81 since July 19, 2023, and the current price stands at $142.53. Monero (XMR) might have a hard time holding above the $135 level in the upcoming weeks, and a break below this level would indicate that XMR could probably test the price level at $130.
Important support & resistance levels for Monero (XMR)
On this chart (the period from March 2023), I marked important support and resistance levels that can help traders understand where the price could move. Monero (XMR) remains under pressure, but if the price jumps above $160, the next target could be resistance at $170.
The important support level is $130, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $120. If the price drops below $120, which represents another strong support level, the next target could be an important psychological support level that stands at $100.
What speaks for the rise in the Monero (XMR) price
The upside potential for Monero (XMR) probably remains limited for the weeks ahead; still, if the price advances above $160, the next target could be resistance at $170.
Traders should also consider that the price of Monero (XMR) is correlated with Bitcoin, and if the price of Bitcoin jumps above $28000, we would probably see this cryptocurrency at a higher price level than the current price.
What indicates the downfall of Monero (XMR)
The downfall of Monero (XMR) can be influenced by a wide range of factors, including market sentiment, regulatory developments, technological advancements, macroeconomic trends, and more.
The last several weeks have been negative for XMR, and investors should continue to take a defensive investment approach as the macroeconomic landscape remains uncertain. The strong support level for XMR stands at $130, and if the price falls again below this level, it could reach $100 this time.
What do analysts and experts say?
The cryptocurrency market remains under pressure; Bitcoin’s price hit levels below $26,000 again, and according to analysts, Monero (XMR) might have a hard time holding above the current price levels. September has a reputation for being a historically weak month for stocks and riskier assets, while Benjamin Cowen, an analyst and founder of Into The Cryptoverse, said this week that he thinks Bitcoin will likely maintain a downside trajectory in September.
Investors should continue to take a defensive investment approach in the weeks ahead, and market sentiment, regulatory developments, and macroeconomic trends will continue to have a major influence in determining the price of Monero (XMR).
There are expectations of “some market turbulence” from looming recession concerns, and many analysts expect that the U.S. central bank could keep interest rates at restrictive levels for a longer period, which is not good for risk-on assets such as cryptocurrencies.
Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.