Could XMR hit $175 ahead of Monero network upgrade?

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YEREVAN (CoinChapter.com) – Monero (XMR) boasted a 50% gain since bottoming out at $96 on June 18. As a result, the digital asset has been trading for $147 in the European session on July 21. But will it be able to reach significant support at $175?

XMR daily chart prints neutral setup

XMR daily chart did not support a bullish stance, as it featured a Descending Channel. The latter entails the price action retesting two parallel trendlines and gradually regressing as the setup persists. Descending Channel is a neutral setup, i.e., it doesn’t predict a particular vector after XMR exhausts it.

However, it is instrumental in determining short-term movements.

Moreover, XMR retested the Channel’s resistance on July 21, suggesting a reversal. Should the pattern remain relevant, the short-term target price for the Monero token would stand at approximately $64, or 56% lower than the current value.

Also read: Should you buy Monero (XMR) after its six-day-long losing streak?

Is the prognosis bearish for Monero?

As of July 21, the digital asset followed Bitcoin’s lead and halted the week-long rally, despite sourcing support from the 50-day exponential moving average (EMA-50; orange wave).

The lowering trading volumes point in the same direction, underscoring the traders’ growing desire to secure their gains and exit the market.

Also read: Monero (XMR) could shed 20% on roaring rising wedge fears.

Thus, the chances of XMR reaching $175 in the current bearish climate are slim. However, Monero bulls have fundamental developments to support their stance.

Upgrade underway

According to the announcement on July 1, Monero’s Network upgrade is expected on Aug 13, after “hardware-wallet-related delays.” Network upgrades are “technically hard-forks and require all participants in the Monero network to update their software,” commented the team.

The upgrade will introduce several new features, including view tags, which reduce wallet sync times by 30-40%. Additionally, the Monero upgrade will include fee changes to improve “security and resilience.”

A ring-size will increase from 11 to 16 – the largest ever absolute increase in the base anonymity set (read: plausible deniability, or base privacy) – of every transaction on the network.

also read the announcement.

Also read: Tesla dumps $936M worth of Bitcoin – what’s ahead for BTC price?

It is unclear whether the upgrade will help Monero get to $175 soon.

While Network upgrades tend to propel digital assets’ prices, the broader market conditions don’t favor the bulls. Bitcoin’s real recovery is not here yet, and the macroeconomic headwinds promise an extension of the bearish market for a while longer.