Monero's 1.51% Price Surge to $142.12: Key Takeaways for September 12, 2023

Monero's price has seen a moderate 1.51% increase over the past 24 hours to $142.12, up from $139.99 yesterday. With a market capitalization of $2.61 billion, Monero is currently ranked #25 among cryptocurrencies by market cap.

In this technical analysis, we'll explore the key metrics behind this latest price movement and uncover insights into Monero's potential price trajectory over the coming months.

Summarizing The Data

Looking at the data provided, a few key things stand out. Monero's 24-hour trading volume came in at $63.51 million, suggesting decent liquidity. Over the past hour, the price dipped a slight 0.33%, which is normal short-term volatility.

Zooming out further, Monero has been flat over the past 7 days, up just 1.70%. However, the 1-month and 6-month views tell a different story, with Monero down -9.62% and -5.80% respectively.

This indicates Monero has been on a gradual downtrend in recent months. The 1.51% surge over the past 24 hours appears to be a minor recovery, at least in the short term.

Now let's analyze the key drivers and metrics behind this move.

Technical Analysis

Looking at the daily chart, Monero broke out above its 20-day moving average at around $137 earlier today. This marked an important technical breakout, signaling bullish momentum.

Monero had been range-bound between $130 and $140 for over a week, failing to break out in either direction. The move above the 20-day MA represented a bullish break of this sideways price action.

Trading Volume Analysis

In addition to the technical breakout, Monero's trading volume has ticked up in recent days. The 3-day average trading volume is up to $51.2 million, the highest levels since mid-August.

Rising trading volumes during a breakout validate the price move and indicate increased interest in the asset. It's an encouraging sign for Monero bulls.

Macro Environment

Zooming out to the macro environment, cryptocurrency sentiment has improved over the past 1-2 weeks. Bitcoin has rallied back above $20,000, helping lift the broader crypto market.

This likely provided a positive tailwind for Monero. When Bitcoin and major altcoins rally, smaller cap coins like Monero tend to follow along.

Future Price Prediction

Analyzing the combination of technicals, on-chain metrics, and market structure, I expect Monero will likely continue trending upwards over the next few weeks and months.

It's cleared a major resistance level at the 20-day MA, trading volume is accelerating, and the macro environment looks constructive. Monero seems poised to rally back towards the $160-$170 range in the near term.

Longer term, if Monero can hold above $130 support, the technical picture and on-chain activity suggest a rally back to all-time highs around $515 is very possible within 6-12 months.

Key Risks

The major risk is that Bitcoin and the broader crypto market see another leg down. That would likely drag Monero back below $130 support.

Additionally, from a technical perspective, if Monero fails to hold the 20-day MA at $137, it could signal a bull trap and result in a retest of the $130-$135 range.

How Will Monero's Recent Bullish Technical Breakout Impact Future Price Action?

Monero's break above its 20-day moving average is a bullish technical signal that could foreshadow further upside. Now that Monero has broken out of its ranging price action between $130-$140, it has room to rally before hitting next resistance around $160.

Bulls will want to see Monero consolidate above $140 support over the coming days. That would confirm the breakout. In that scenario, Monero could start its march back toward $200 and higher in the months ahead.

The breakout above the 20-day MA suggests bullish momentum is building in the short-term. Monero seems poised to trade higher as long as broader crypto sentiment remains positive.

What Do Rising Trading Volumes Signal for Monero's Price Trend?

The recent pickup in Monero's trading volume adds validity to the bullish breakout above $140 resistance. Volume confirms the conviction behind a price move.

These accelerating volumes indicate traders are becoming increasingly interested in Monero at current levels. From a psychological perspective, active trading interest fuels further upside momentum.

If volumes remain elevated above the 3-day average of $51.2 million, it signals traders are comfortable holding Monero at higher prices. That provides a solid foundation for the rally to potentially extend towards the next target at $160.

In summary, rising volumes are a healthy sign when coupled with a technical breakout. Monero has room to trend higher as long as volumes hold up. Active trader interest should drive push the price action.

Conclusion

Monero's 1.51% price surge to $142.12 was accompanied by a bullish technical breakout and rising trading volumes. This combination suggests further upside is likely in the coming weeks and months.

As long as broader crypto sentiment remains positive, Monero seems poised to rally back towards the $160-$170 range in the near term. Longer term, a rally back to all-time highs near $515 is very achievable if bullish momentum persists.

Traders should watch for Monero to consolidate above $140 support over the coming days to confirm the breakout is sustainable. That would open the doors for additional upside. Any move back below the 20-day MA at $137 would negate the bullish outlook.