Monero (XMR) Price Rises Despite Network Control Concerns
Monero (XMR) Price Action Amidst Network Security Concerns
XMR, the native token of the privacy-focused Monero network, experienced a 4% surge today, making it a top performer against the backdrop of a wider crypto market downturn. This price increase occurred even after AI protocol Qubic claimed to have achieved majority control over the Monero network and Kraken exchange briefly froze XMR deposits.
Qubic's Claim and Kraken's Response
On August 14, Qubic, an AI-driven crypto mining project, announced it had acquired a majority of Monero's hashing power, theoretically enabling a 51% attack. Following this announcement, Kraken temporarily suspended XMR deposits as a precaution. Kraken stated that XMR trading and withdrawals remained active. The exchange lifted the suspension hours later, though deposits now require 720 confirmations before crediting.
Market Analysis: XMR's Resilience
Despite centralization fears, XMR has shown significant strength. The XMR/USD daily chart indicates that the token reached a new high since August 16. This suggests that concerns have sparked renewed interest in XMR.
Key Indicators:
- Relative Strength Index (RSI): Currently at 56.49 and trending upwards, indicating increased buying pressure.
- Moving Average Convergence Divergence (MACD): A bullish crossover occurred, with the MACD line (blue) crossing above the signal line (orange) for the first time since July 19, suggesting an emerging uptrend.
These indicators suggest growing buyer confidence, potentially driving further price rallies. The RSI measures overbought and oversold conditions, with values above 70 suggesting an asset is overbought and values below 30 indicating it is oversold. The MACD crossover confirms short-term momentum has shifted in favor of buyers.
Potential Price Targets for Monero
The technical indicators suggest renewed market confidence in XMR despite network centralization concerns. Continued momentum could push XMR past the $302.74 resistance towards $325.13. However, a drop in demand could lead to a fall to $270.86.
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