Monero
The cryptocurrency Monero (XMR) is among the most private, along with coins like Zcash or Dash. Although the concept of ensuring anonymity in the network is a subject of controversy and even criticized in the crypto community, the project has managed to establish itself on the market in this capacity due to a special mechanism of transaction obfuscation in the protocol (based on the CryptoNote solution), the use of hidden addresses and ring signatures.
For example, it is known that in the past Edward Snowden
has referred to XMR as an “amateur cryptocurrency,” but admitted that he nevertheless owns some coins. However, the technician prioritized Z-cash. In opposition to him.
developer Riccardo Spagni and Litecoin creator Charlie Lee spoke against him.. The latter admitted that among anonymous altcoins, Monero is the one he prefers;
Thus, the project has a significant number of both supporters and critics, which, however, does not cancel the restrictive policy of many financial regulators (especially in Europe and the U.S.) regarding the confidential koin.
Ban on anonymity
One of the major factors explaining the low capitalization growth rate of projects like Monero is the strict regulatory policy of many countries. For example, from the beginning of 2023, the authorities of the Emirate of Dubai, represented by the Virtual Assets Regulatory Authority (VARA), have imposed a ban on the use of any cryptocurrencies that “increase anonymity”.
There is also increased scrutiny of the cryptocurrency industry in the eurozone, which recently voted to implement MiCA, a law requiring identification of cryptocurrency exchange customers making any funds transfers. Parliamentarians cite money laundering prevention practices and investor protection as justification for the policy. Naturally, this can’t help increase legal investments in coins like Monero, Zcash, Dash and many similar ones.
The practice of using Monero for criminal purposes remains controversial. Many criminals prefer this particular cryptocurrency. In July, the leak of personal data of Razer’s customers was revealed. The attackers put them up for sale, indicating that they accept payment specifically in XMR. Such facts should be taken into account when analyzing the koin rate. \
But how promising is the coin from an investment point of view? Spoiler: despite the above mentioned features, the coin has provided great opportunities for speculative earnings over the past year.
Technical analysis
If you’re a trader looking for a coin that changes in value quickly, Monero is your choice. Since November 2022, the coin has managed to go both ways (up and down) at least 23% five times. From late November to late January, the coin rose more than 60%, then fell nearly 30% from January to early March, rose 25% in the second half of March, fell nearly 24% from late March to early June, and finally rose more than 35% from mid-June to early July.
As you can see from the above examples, it takes 2-2.5 months for a coin to rise or fall. The whole of July and the first decade of August were in the red zone for Monero: the drop amounted to about 9%. On August 10, at the resistance level around $155, the bulls seized the initiative and now it costs almost $160. Under favorable circumstances, the koin may well reach the resistance level – around $170. However, there is still no support from the indicators: the XMR token is trading below the 50-day moving average (marked in blue) and the relative strength index is below 50.
Source: tradingview.com
Monero has a market capitalization of just over $2.9 billion. The cryptocurrency ranks 26th among all other cryptocurrencies on this metric.
Thus, Monero is a coin that is conventionally superior to even bitcoin in terms of privacy. For this reason, the coin is often used by attackers. From the point of view of earnings Monero is more suitable for speculators (including traders and scalpers), but not for long-term investors – due to its high volatility.
This material and the information in it does not constitute personalized or other investment advice. The opinions of the editorial staff may not coincide with the opinions of the author, analytical portals and experts.