The Monero price has until recently struggled to recover from the recent cryptocurrency market dip. This popular altcoin had taken a lot more losses compared to some other coins. Fast forward a few days, and Monero has seen a major price spike out of the blue. After a few days of sideways trading, it seems XMR may be preparing for its next leg up. Right now, the price is hovering around the US$126 mark, which is a 7.11% increase in value over the past 24 hours.
Monero Price Finally Starts to Rebound
The past two weeks have been somewhat crazy for the Monero trader community. With a major price increase taking place not too long ago, it was evident the Monero price would correct itself sooner or later. Unfortunately for XMR holders, the Bitcoin price also took a big dump while this correction was taking place, pushing the Monero price down by quite a lot. At one point, the Monero price briefly dipped below US$100, although that dip was bought up quickly.
These past few days, not much has happened to the Monero price. After the initial recovery from the US$100 price point to US$115, the price remained remarkably flat. One has to keep in mind Monero doesn’t have the trading volume of Bitcoin Cash, Ethereum, Litecoin, or Bitcoin, as it is not primarily driven by speculation. Instead, it seems the price responds to recent technological developments, which means it can take days if not weeks or months until the price starts moving in either direction.
For holders of XMR, the Monero price isn’t overly important either. The vast majority of the community values this cryptocurrency for its privacy and anonymity, something nearly no other cryptocurrency can provide in any significant capacity today. Additionally, due to its low market liquidity, it is not a tool for speculators. In fact, anyone buying into Monero for a quick flip will often be sorely disappointed. That is a good thing, though, as cryptocurrencies should be valued based on their potential, rather than speculation and hype.
Speaking of market liquidity, Monero has seen US$97 million in 24-hour trading volume. Compared to most other altcoins, that is next to nothing. Over 60% of this volume has originated from South Korea’s Bithumb exchange, indicating that particular market has high hopes for Monero moving forward. The exchange recently had two trading events to celebrate the listing of XMR, though neither caused any significant price changes. Not that that was expected, mind you, as the celebrations were tied to trading volume rather than on price changes.
All other exchanges handling Monero are showing far less trading volume. The number 12 market on the list of exchanges ranked by trading volume is showing less than US$1 million in 24-hour volume. Again, this should not be surprising, as many people still underestimate the potential of XMR. Moreover, there are a lot of people who simply hold and accumulate, rather than sell for the slightest gains possible. With some major developments on the horizon, the Monero price may see more movement in the coming weeks and months.
For the time being, the 7.11% price gain seen by Monero is quite interesting, but it’s not a reason to get overly excited either. To be more specific, Monero is not a currency that will be pumped and dumped anytime soon. Nor should it be, as it is one of those rare examples of a currency which doesn’t undergo such hype cycles. The market will eventually conduct a fair assessment of what one XMR should be worth. Whether that is US$126 or US$1,500 remains anybody’s guess for the time being.