Can Monero’s (XMR) Social Activity Hike Keep the Price Soaring?

Monero (XMR), known for its strong emphasis on privacy and anonymity, has captured the attention of market participants for its increasing presence in social discussions. Social media platforms have become a significant driver of market sentiment and price movements for various cryptocurrencies, and Monero is no exception.

Interestingly, as discussions around privacy and decentralized finance soared, XMR became a subject of interest on August 20, as it got named “coin of the day.”

However, while social hype can contribute to short-term price surges, the sustainability of such gains and their correlation with the coin’s core fundamentals need to be carefully assessed. For XMR, CoinMarketCap revealed that the token’s value increased by 2.72% in the last 24 hours.

Caught at Crossroads

The XMR/USD 4-hour chart shows that the social activity propelled a large buying volume. Consequently, this resulted in a sharp green candle as the price rose to $148.68 from $143.54. With respect to momentum, the Relative Strength Index (RSI) was 48.89.

Previously, as of August 17, the RSI was 16.76, depicting that XMR was oversold. So, the RSI moving upwards and approaching the 50 reference level suggests a good buying momentum.

But the Exponential Moving Average (EMA) indicated that the price may not last long in the upward direction. At the time of writing, the 50 EMA (yellow) had crossed over the 20 EMA (blue). The crossover means that, in the intermediate term, the XMR trend could be bearish.

XMR/USD 4-Hour Chart (Source: TradingView)

Time to Look for Entries

But the Awesome Oscillator (AO) did not share the same sentiment. As of this writing, the AO was -0.49. Typically, a negative AO means that the slow-moving average is greater than the fast-moving average.

The indicator being negative, implies that bearish forces were driving the market. However, the same AO was making higher highs, signaling that bulls were attempting to take over control. If the AO eventually rises into positive territory, then XMR could target between $150 to $157.

Furthermore, the Chaikin Money Flow (CMF) rose to 0.06. A positive money flow of the CMF is marked by the green area and suggests that the trend is upward.

XMR/USD 4-Hour Chart (Source: TradingView)

Since the CMF was not above 0.20, it means that XMR was not overbought. Therefore, in the short term, traders can look for entries around $143 and $145.

Disclaimer: The views, opinions, and information shared in this price prediction are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be liable for direct or indirect damage or loss