Monero Analysis for September 2022: Can Monero Keep Its Recent Gains?

Risk Disclaimer >>
Ad disclosure ChesWorkShop takes pride in assisting you in forging wise financial paths. To realize this, we associate with seasoned professionals to deliver the latest updates and details. Interactions involving specific links, sponsored narrations, products and/or services, broker lead transfers, or advertisements can potentially earn us a fee. Our objective is to maintain a space where users can interact without encountering disadvantages. Bear in mind that the details shared on our webpage do not hold the ground as legal, tax, investment, financial counsel, or any formal advice but are shared with an informational intention only. If in doubt, we propose reaching out to an independent financial advisor.

On September 10, Monero (XMR) again formed a higher low with an increase of 4.3%. This gave short-term investors a chance to make up 10% gains from its recent $141.6 low.

A bullish rally may occur with the short-term higher momentum if the bulls keep the XMR’s price above the latest swing low. The crypto also traded at $154 against the USDT pair. The four-hour price chart also displayed a buy-on-the-dip strategy, propelling the price towards the next $170 resistance area. However, this is possible if the bulls can gain the price above the recent swing high.

Many wonder whether Monero can keep its recent gains.

Displaying Strength in the Crypto Bear Market 

Monero has displayed strength in the crypto bear market, often seen in other coins, such as Bitcoin and Ethereum.

On September 5, this privacy-focused crypto network reached an 8% high after a major upgrade implementation to its blockchain. The said upgrade continuously improves the network security and transaction times. As a result, many wonder if it can keep those recent gains until the end of September.

Over the past five years, Monero has soared from below the $40 mark to its all-time low on September 5 at almost $160.

In 2017, XRM had its first major rally, posting 2 times returns as prices soared near the $350 mark at the start of the year from below $14. Then, it is followed by a bearish run from 2018 to 2019 after posting yearly losses.

Then, it rallied with the broader crypto market in the first half of 2021, hitting an all-time high on May 7, 2021, at $517.62. The tightening monetary policies on the global scene resulted in a crypto bear market in 2022. This led Monero to drop to $156.84, which is equivalent to 37% year-to-date losses.

However, XMR’s value has been more resilient in 2022 compared to most cryptos like Bitcoin and Ethereum. Remember that Bitcoin and Ethereum have fallen about 57% over a similar period.

How does August Network Upgrade Affect Monero’s Performance in September?

Monero is known for implementing two annual scheduled protocol upgrades. The latest upgrade occurred last August 13, 202, which is a permanent blockchain change.

The official Monero Twitter account has posted:

“Congratulations on a successful network upgrade!

#Monero is now more private and efficient with ringsize 16, Bulletproof+, and view tags! 

Make sure your node/wallet is updated to continue using Monero.

Privacy and fungibility matter, and it’s exciting to keep improving!”

The upgrade is meant to reduce wallet sync times from 30% to 40%, improving network security and making faster transactions.

Monero has also introduced the Bulletproof+ algorithm. This means all transactions will become smaller. As a result, there will be faster participant verification and wallet transactions.

The upgrade is also meant for introducing the Seraphis, a next-generation transaction protocol. This protocol is still under development and is soon to be completed.

According to the network, “Seraphis is a major change to the Monero ecosystem. While it involves modifications to addresses and transaction building blocks, its design offers flexibility and useful functionality that aren’t with today’s RingCT protocol.”

Since this significant upgrade fuels XMR, experts expect it has another rally by the end of 2022.

Neutral XMR Current Sentiment 

Many analysts predict Monero will continue to raise its price in September, and in October, it could soar as high as $201.89. The technical indicators even displayed the current sentiment for the altcoin as neutral, providing 19 buy signals and 11 sell signals.

However, experts reminded everyone that markets remain volatile. Although algorithm-based forecasts are available to have a view of past performances, there is no guarantee for future results. It is always best to research and make decisions based on trading goals and risk tolerance.

Over the past week, XMR has been up 8% due to a successful upgrade, bringing a more secure network and faster transactions. On the other hand, the altcoin stays 37% year-to-date down.

As for now, investors enjoyed the positive impact of the network upgrade last month. Meanwhile, the bulls create an aggressive oversight in XMR’s daily price scale. They aim to close the daily price candle above the red moving lines of the EMA Ribbon indicator.

Risk Disclaimer

ChesWorkShop commits to presenting fair and reliable information on subjects including cryptocurrency, finance, trading, and stocks. However, we do not have the capacity to offer financial guidance, advocating instead for users to conduct their own diligent research.

Leave a Reply

Your email address will not be published. Required fields are marked *