In the opinion of many analysts, the value of the Monero (XMR) crypto could have good growth prospects between now and the end of the year.
In a strongly negative market, the XMR crypto has been one of those that has certainly performed better, or perhaps it would be more accurate to say “less worse”. On 22 April, the asset had a strong surge surpassing the $250 mark, only to fall precipitously to $160 within a few weeks.
But in the following months, it seems to have consolidated its positions in the $150 area, and this may represent a classic case of an accumulation phase before a new robust rise.
What is Monero and how has the value of the crypto changed
Monero is a project launched in 2014 and its goal is simple: to allow transactions to take place privately and anonymously. It currently ranks as the 27th most capitalized cryptocurrency with about $2.6 billion.
Its first name was BitMonero, to later become simply Monero, which means coin in Esperanto. The identity of most of its developers is also mysterious, and in the past, someone has even advanced the hypothesis that Satoshi Nakamoto himself, inventor of Bitcoin, might be behind the project.
It is possible to describe the operation of the Monero blockchain in a rather simplified way by the fact that whenever any XMR transaction is made, the wallet of the Monero user carrying out the transaction forms a kind of ring with the keys of other users that it extracts from the blockchain. For anyone observing, it is impossible to tell which key was used to sign, making the transaction anonymous.
The currency of choice for hackers and criminals
And that is why Monero is also being used for criminal purposes and by hackers. A recent report by blockchain analytics firm CipherTrace, found how privacy-focused cryptocurrencies such as Monero, are playing an increasingly important role in the growing wave of ransomware attacks, which are hitting the crypto sector in the first few months of the year, having already made a record number of assaults in 2021.
Monero’s recent hard fork, which makes transactions even more anonymous while enhancing privacy, could, according to experts, encourage more attempts by hackers and criminals.
For this reason in 2020, the IRS ( Internal Revenue Service) offered $1,000,000 to anyone who develops a system to track Monero transactions, but no cryptocurrency experts responded to the call for proposals with a convincing project.
On the other hand, last July South African authorities issued an international extradition order for one of the coin’s developers and founders Riccardo Spagni for alleged illegal fraud committed in South Africa.
Upcoming bullish trend in sight for the value of the crypto Monero?
Then again, this does not affect the coin’s prospects, which remain quite good according to many analysts and experts. The fact that its trend is so sideways, between the support at $135 and the resistance set at $170, suggests that there could soon be a good uptrend, once the resistance is breached, which could take the stock even above $200.
It is also worth mentioning as a statistic that Monero did not achieve its all-time high in November, like almost all cryptocurrencies, but in May when it touched $480. This is to say that Monero could also anticipate the movements of the rest of the market, which could, according to many experts, have an upward trend in the coming months.