The Monero price has made a comeback after it dropped to the lowest level since May on Tuesday. The XMR price is trading at $220, which is 20% above the lowest level on Tuesday. According to CoinMarketCap, the coin is valued at more than $3.9 billion and is the 26th biggest digital coin.
Monero news: Monero has come into the spotlight after it became the coin of choice among cybercriminals. This is because, unlike Bitcoin, transactions made in XMR cannot be traced. Indeed, the Financial Times did a feature about this week. They pointed to the fact that some of the biggest cybercriminals have turned to the coin especially after the FBI managed to track funds stolen from Colonial Pipeline.
Russian hackers known as REvil have moved exclusively to Monero while Darkside charges a 10% to 20% premium to victims paying in Bitcoin. The report cited an analyst who said that about 20% of all ransoms are paid in monero and that the figure will likely rise to 50%. So, what next for Monero price?
Monero price technical analysis
While Monero has a strong utility, its price has a correlation to other cryptocurrencies. For example, XMR price declined to a monthly low this week as the rest of the crypto industry crashed. On the daily chart, we see that the currency is down by more than 57% from its highest level this year. It has also dropped below the 25-day and 50-day exponential moving averages (EMA).
Notably, it also seems to be forming a bearish pennant pattern. Therefore, the coin will remain in a bearish trend so long as it is below the two MAs. A deeper downward trend will be validated if it manages to move below the important support at $155, which is the lowest level since February. However, a move above $315 will invalidate this prediction.