The Monero price is attempting to rebound after falling sharply in September. The XMR token crashed by more than 34% from its highest level in September to a low of $212. It is currently trading at $246, which is about 15% above the lowest level in September. Its market capitalization is at $4.4 billion, making it the 35th biggest cryptocurrency in the world.
What is Monero?
Monero is one of the biggest cryptocurrencies in the world. The currency was created with the goal of solving some of the most difficult challenges that exist within Bitcoin’s ecosystem.
For one, while Bitcoin was created with privacy in mind, in reality, it is not a private platform. Besides, Bitcoin transactions are all recorded in a public ledger that can be seen by anyone.
As such, these transactions can be tracked by computer scientists and law enforcement officials. Indeed, the vulnerability of Bitcoin came to the limelight when the Federal Bureau of Investigation (FBI) managed to track ransom paid by Colonial Pipeline.
Monero is built with a complex technology that makes it almost impossible to track such payments. The platform encrypts data between the sender and receiver making it difficult to track. Indeed, a few years ago, the Internal Revenue Service (IRS) gave out a reward of $625,000 to two companies that managed to break its code.
Therefore, Monero is widely used in the dark web as a means of payment. Operators in these marketplaces love it because of its security and the fact that transactions are fully anonymous.
Other reasons why Monero is widely popular is that its transactions are relatively cheaper and faster. On average, a Monero transaction is verified within less than 2 minutes. They cost less than a dollar.
Still, the Monero price tends to track that of Bitcoin. In most cases, the XMR price falls when Bitcoin falls and vice versa. In September, it declined because of the rising risks in the financial market.
Monero price prediction
The weekly chart is the most ideal to explain what is happening with the XMR price. As you can see, the price jumped to a high of $475 this year. This was a notable price since it was the previous highest point on record.
As such, it is clear that Monero has been forming a cup and handle pattern. And in price action analysis, this pattern is usually a sign of bullish continuation. The recent decline is part of the formation of the handle section. Therefore, there is a possibility that the Monero price will rebound in the coming months.