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Monero Price Continues to Grind. Bearish Divergence is a Concern

The Monero price rally continued this week as part of the overall cryptocurrencies rally. It is trading at $450, which is slightly below the all-time high of $515. XMR has a market cap of more than $8.2 billion and is the 25th biggest digital currency in the world.

What happened: For starters, Monero is a digital currency that was started by Nicolas van Saberhagen in 2014. He was inspired by the success of Bitcoin. In fact, his goal was the same as that of Satoshi Nakamoto. That’s because he wanted a cryptocurrency that is private and one that is not controlled by anyone. 

However, he also added more features to ensure that it was really private. That’s because Bitcoin transactions can easily be tracked by the government and other entities. Today, Monero is one of the biggest privacy-focused cryptocurrencies. Its transactions are not traceable because of advanced encryption. 

This week, the focus has been on the currency after reports emerged that hackers had breached Colonial Pipeline in the United States. The Russian hackers are said to have demanded payments through cryptocurrency. While details are scarce, there is a possibility that Monero is involved since it is the best-known privacy coins around.

Monero price prediction.

The daily chart shows that the XMR price has been in a strong upward trend. The currency has remained above the 50-day and 25-day moving average, which is a sign that bulls are still in control. Further, the currency is between the ascending channel that is shown in black. Therefore, the bullish trend will likely remain so long as the price is above the two moving averages. 

Still, the Relative Strength Index (RSI) shows that the currency has started to form a bearish divergence pattern. This is a sign that the price may soon retreat, which means that bulls should be a bit cautious.

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XMR price chart

Monero Price

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