Monero is having a great time and his total market capitalization is at 2018 levels. Is this just a price movement of a fundamental correction?
Monero, the most important privacy currency in the crypto ecosystem, is having a great time, outpacing even Bitcoin in comparison.
As of today, October 15, 2020; XMR closed with a total market capitalization of $2.29 billion. At a price of $129 per token, cryptography is performing phenomenally, reaching market capitalization not seen since 2018, when bearish sentiment took over crypto-verse, draining markets in general.
Bulls are in control, but for how long?
Looking at things from another perspective - and considering that such capitalization was last seen during a bearish phase - in terms of sentiment analysis, Monero is breaking limits that were only observable in 2017, during the last bullish run of the cryptocurrencies in general.
The Relative Strength Index - a number that tries to determine whether an asset is overbought, oversold or in a state of equilibrium - shows that bulls are in control. The token is starting to move into an overbought zone, which means that traders must be cautious and think before a possible settlement.
However, broadly speaking, a high RSI in the current circumstances does not seem as frightening as that of 2017. Other data show a balanced market and a good place to grow in the short term.
The Monero community has many reasons to be optimistic
From the point of view of fundamental analysis, Monero has proved its worth over time. Despite not having the blessing of law enforcement agencies worldwide - especially in the United States - blockchain has been able to remain intact, proving that, at least until now, it is undecipherable even for the most influential government agencies in Worldwide.
And while there are companies like Chainalysis working side by side with agencies and regulators to find a magic door for authorities to invade the privacy of those who love using Monero, none have been successful.
The authorities' concern seems to be having a positive effect on investors. In fact, the United States Department of Justice issued a statement asking companies to collaborate with the authorities to allow access to private data and, in a kind of defiant attitude, the Monero community and privacy advocates responded vehemently, which, of course, translated into a spike price.
However, the cryptocurrency is still 73% below its ATH. Although it is performing better than other tokens in the top 10 by market capitalization, it is still far from occupying a place in that privileged list after tokens such as Polkadot, Chainlink, and Crypto.com’s CRO entered the scene to steal the show.
Too bad there are no DeFi projects on Monero… yet.