XMR is currently down 1.19% in the last 24 hours. It is floating across the trading board at a value of $171.36. However, it reflects a surge of 0.41% in the last 7 days and 10.96% in the last 24 hours. The dip comes at a time when the market is experiencing a bull run following the Federal Reserve’s announcement of a rate cut by 50 bps. While it demonstrates a movement in the opposite direction, crypto enthusiasts believe it is a minor correction phase for an upcoming rebound.
Factors that are known to affect the price of XMR include the token’s demand, market sentiment, and the health of the cryptocurrency market.
For starters, Monero’s native token also follows the basic demand-supply mechanism. The price of XMR goes up if the demand is higher; it drops in the books when investors are not looking to acquire any new piece of the token. A similar fundamental principle applies in terms of supply. To control the price, it must be in excess; otherwise, a limited supply can cause a price imbalance. The thesis posits that those with deep pockets will seize control of limited market resources.
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Market sentiments are not precisely working for XMR right now. The token is experiencing a decline during a period when the overall market sentiment is bullish. The Federal Reserve has not only made one of the biggest cuts in lending rates, but it has also hinted that two more cuts could happen by the end of this year, that is, 2024. For reference, the year still has 3 months left to conclude. Further reductions will boost investors’ confidence in exploring risky assets such as the cryptocurrency segment.
Finally, consider the market’s health. It mostly refers to the availability of liquidity. The factor is an extension of the previous point, since liquidity is determined by the size of funds invested in the market – in this case, the cryptocurrency market.
No matter how XMR has performed in the last 24 hours, it has set a positive stage for 2025 and the years that will follow. Monero price prediction estimates that XMR will reach $251.30 by the end of this year, which is 2024. Later projections indicate that it will surpass the $500 mark by the end of 2025. That is almost double of 2024’s maximum predicted value.
That is in line with the Near-term predictions. The next 30 days are likely to see a surge of 27.30% from the current value, taking XMR as high as $218.35. Suffice it to say, the long-term outlook is positive and bullish for the native token of Monero.
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Volatility is another factor that could play a role. It is often high for XMR. Token’s volatility right now is on the lower side of 2.60%, with a FGI of 49 points. The 14-day RSI is around 55.79.
