Even though private tokens are not benefiting from the same attention as three years ago, Monero had managed to bank solid gains this year, exceeding the June 2019 high since a few weeks ago. That had been a major technical development and buyers look determined to drive the price even higher, as the positive Bitcoin performance acts as a tailwind for the entire market.
Monero up 300% – where it could go next?
Breaking above $120 was not only a major bullish signal but at the same time, market an important yearly milestone. Back in March, Monero dipped below $30 and few people were even thinking about the performance we’ve seen since then.
What followed was a massive rally that continues to unfold parabolically. At a first glance, the next key resistance area is located around $150 – $160, where we can see multiple spikes between 2018-2019. That means XMR can continue higher from this point, rewarding those that were confident enough to buy at lower levels.
The 15th largest cryptocurrency in the world, with $2.2 billion in market capitalization, Monero is one of the first private tokens and had constantly been attractive for those that want complete privacy while conducting financial transactions on the web.
Is Monero vulnerable to regulatory changes?
As compared to the December 2017 all-time highs, Monero still has a lot of ground to recover. Considering the token lost more than 90% of its value, the outperformance has seen this year comes after two years of depressing figures.
It would be important to recall that all cryptocurrencies embarked on a bear market in 2017-2018, as regulatory pressures started to build. The same weakness should be considered at present, as well, because privacy tokens are the most vulnerable.
In case governments will continue their crackdown on private financial transactions to suppress terrorist financing or tax evasion, blockchains like Monero will need to undergo serious changes to comply with the new norms.
For now, that doesn’t seem to be the case and more important than that is that the market doesn’t care. With valuations rising impulsively within months, emotional trading and FOMO are pushing XMR to new 2020 highs.
The US dollar continues to be pressured and that’s a major push for cryptocurrencies, including Monero. Investors and traders are looking for value in hard assets that have fixed supplies and as strange as it might be, crypto qualifies. Is Monero among the cryptocurrencies you are monitoring in 2020?