Monero price has gone parabolic over the past few months, and on Sunday it reached its highest level since May 2021 as demand for privacy tokens soared. The XMR token jumped to a high of $470, up 365% from its 2024 low.
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 has risen.
The ongoing surge was driven by Zcash, which has now become the 12th-largest cryptocurrency in the world after skyrocketing from below $50 in October to over $600 today.
Zcash’s surge has driven demand for privacy tokens, with top coins like Decred and Dash increasing by triple digits over 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 were listed by more exchanges.
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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 its highest level in months, signaling that investors anticipate future prices will be higher.
There is a chance that Monero and other privacy tokens will continue to do 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
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, a common bearish reversal signal.
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 that the token continues to rise, potentially to the psychological level of $500. A move below the ultimate support level at $375 will invalidate the bullish Monero prediction.
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