Monero price has gone parabolic in the past few months, and on Sunday, reaching its highest level since May 2021 as demand for privacy tokens soared. The XMR token jumped to a high of $470, up by 365% from its lowest level in 2024.
Why the Monero Price is Soaring
Monero price has been in a strong uptrend and has now crossed an important resistance level as demand for privacy tokens rose.
The ongoing surge was driven by the performance of Zcash, which has now become the 12th biggest cryptocurrency in the world after soaring from below $50 in October to over $600 today.
Zcash’s surge has led to more demand for privacy tokens, with top tokens like Decred and Dash soaring by triple digits in the past few weeks.
Monero’s performance in the futures market has improved lately, with the futures open interest soaring to $68 million, up from $10 million a few months ago. The interest would have been higher if Monero was listed by more exchanges.
READ MORE: RWA News: What We Know About the $1.2 Billion Securitize Nasdaq Listing
It has also led to a surge in short liquidations, which jumped to $1.9 million, the highest level this month. Most importantly, the funding rate has jumped to the highest level in months, signaling that investors anticipate that the future price will be higher.
There are chances that Monero and other privacy tokens will continue doing well in the coming months as users embrace the technology. Also, Monero may benefit if top exchanges like Binance and Coinbase decide to relist it.
XMR Price Technical Analysis
Monero price chart | Source: TradingView
The weekly chart shows that the XMR price has been in a strong uptrend in the past few months, moving from a low of $101.35 in February to a high of $470 this week.
XMR price has moved above the important resistance level at $428, the highest swing on May 19. Moving above that level invalidated the forming double-top pattern, which is a common bearish reversal sign.
Monero price has remained above the 50-week and 100-week Exponential Moving Averages (EMA), a sign that bulls remain in control.
It has moved to the extreme overshoot level of the Murrey Math Lines tool and the Supertrend indicator.
Therefore, the most likely scenario is where the token continues rising, potentially to the psychological level at $500. A move below the ultimate support level at 375 will invalidate the bullish Monero forecast.
READ MORE: Cardano Price Forms Risky Patterns as Hoskinson Bets on Leios and Midnight
