Monero price has moved into a technical bear market after falling by 20% from its highest point this week. XMR was trading at $635 on Saturday, lower than the year-to-date high of $800. Still, despite the ongoing pullback, there are signs that the token will bounce back, and possibly hit the key resistance at $1,000.
Why Monero Price Has Surged This Year
XMR price has been in a strong bull run in the past few years, moving from a low of $100 in January 2024 to a record high of $800 this week. This surge happened as investors embraced privacy tokens, with most analysts expecting the segment to do well this year.
Its rally accelerated late last year when Zcash, another top privacy token, moved from nowhere and went parabolic. This surge also triggered a bullish momentum on other similar tokens like Dash, Horizen, and Decred.
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Monero also benefited from the regulatory clarity that the Donald Trump administration has provided to the crypto industry. The administration has been receptive to privacy tokens, as evidenced by the developments at Tornado Cash.
Tornado Cash, a privacy crypto project, was sanctioned during the Joe Biden administration for facilitating illicit flows. However, with support from Ethereum, the company sued and a court agreed with it that it could not be held liable for money laundering.
Monero and other privacy tokens also benefited from Trump’s pardon of Ross Ulbricht, the founder of Silk Road. This pardon also sparked speculation that privacy tokens would benefit from a friendlier legal environment.
XMR Price Technical Analysis
The weekly chart shows that the XMR price formed a double-bottom pattern at $98.35 in June 2022 and February 2024. A double-bottom is one of the most common bullish reversal patterns in technical analysis.
The coin then formed a cup-and-handle pattern, which is characterized by a rounded bottom and a handle. It has moved above the upper side of the cup at $510.
Monero price has also remained above all moving averages and is now above the Major S&R pivot point of the Murrey Math Line tool. The distance between the upper and the lower side of the cup is $415. Adding this amount to $510 gives a target of $925. A move above that target will point to more gains, potentially to $1,000, which coincides with the ultimate resistance of the Murrey Math Lines.
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