One of the most notable coins that can be found in the overall crypto ecosystem is Monero, which is renowned for being a privacy-focused coin. The token is doing quite well in the market and in some cases, it has even managed to outperform Bitcoin, the top cryptocurrency in the market. On October 16th, 2020, the total market capitalization of Monero (XMR) reached a whopping $2.29 billion. Currently, the crypto is trading for a value of $129 per token, but it has shown impressive levels of performance so far. The only other time that the coin had managed to achieve this level of market capitalization was back in 2018.
This was when the Crypto Winter hit and bearish sentiments ended up draining the markets at large. However, things appear to be quite interesting from another perspective. The last time such a market cap had been seen by Monero was one of the bearish time periods in the entire history of crypto. As far as sentiment is concerned, the crypto now seems to be breaking limits in the bullish investors out there. Such levels of enthusiasm had last been seen during the great bull run that took place in 2015, which was led by the ICO bubble.
If you take a look at the RSI (Relative Strength Index) of Monero, which determines whether an asset is over-purchased, oversold, or is in equilibrium, it indicates that currently the market on a whole is in control of the bulls. The token has begun to move towards the overbought zone, which means that traders have to be very careful and they need to be prepared for a possible sell-off event that will end up correcting the price. Even then, it is clear from current circumstances that a high RSI rating is not that scary as it used to be back in 2017.
There is other data that indicates that the crypto market has reached a state of balance, which could provide a good platform for short-term growth. Even though the law enforcement agencies of the world have not given any support to Monero and it has been opposed by the US, the coin has proven its value, if you look at it from a fundamental perspective. Even though law enforcement may be against this blockchain protocol, it has managed to stay and flourish. This is proof that Monero remains elusively indecipherable, as even the biggest agencies in the world have not managed to break it.
However, this might not go on for long because Chainalysis and a number of other companies are working with agencies and regulators for finding out the magic backdoor needed to crack the coin’s anonymity. This is assuming they haven’t already accomplished it and are keeping it under wraps. Even though it is quite obvious why the governments don’t like it, as its anonymity makes it the perfect tool for criminals, it is safe to say that Monero is here to stay and its price is only rising with its increasing popularity.