XMR jumps nearly 17% intraday ahead of Monero’s upcoming hard fork

NEW DELHI (CoinChapter.com) — Privacy token XMR’s prices jumped nearly 17% intraday on Apr 18, as it went from the day’s low of $233.7 to reach a high of $272.

Russia-Ukraine tensions could be a likely fuel behind the rise of privacy coins, cryptocurrencies that preserve user anonymity by obscuring transactions on its network. Monero prices have jumped 46.2% since Mar 18.

In addition, the Monero token’s upside movement triggered a technical pattern that might help XMR continue its uptrend. The Decred token’s 50-day exponential moving average (yellow wave) is likely to move above the 200-day EMA (green wave), forming a golden cross.

Traders and analysts usually interpret the pattern as an indicator of a definitive uptrend in the market. If XMR prices respond to the Monero token’s bullish cues, it would likely flip immediate resistance near $268 before moving to target resistance near $279.

Finally, a sustained uptrend could see XMR reach $292, a price level that Monero tested as a resistance between Sept 7, 2021, to Nov 15, 2021.

Also Read: Decred (DCR) jumps 64% in a week as it prepares to hurt PoW miners.

Additionally, momentum oscillator MACD charted a bullish crossover for XMR on Apr 17. A bullish crossover forms when the MACD line (difference of 12-day and 26-day EMA) moves above the MACD signal line (9-day EMA of MACD).

Moreover, bars on the MACD histogram are expanding, indicating the increasing bullishness of Monero’s price momentum.

XMR’s RSI Likely To Enter Overbought Region

The Monero token’s relative strength index moved near overbought regions on Monday. In detail, traders often consider an overbought RSI a prelude to an upcoming trend reversal in bears’ favor. As such, overbought RSI levels often trigger sell-offs.

Prices might pull back if XMR’s RSI crossed into the overbought region. The Monero token’s RSI is technically neutral, clocking 68.99 on the daily charts.

If the RSI becomes overbought, XMR can fall to $252, a price level that has rebuffed Monero’s uptrend between Nov 21, 2021, to Apr 18. Moreover, a market-wide sell-off could see XMR prices fall to support near $242.

Further downtrend could see XMR fall to support from its 20-day EMA (red wave) near $230.

Hard Fork Ahead

On Jul 16, the Monero network’s hard fork would go live at block height 2,668,888. The update involves increasing Monero’s ring size from 11 to 16, adding view tags, introducing bulletproofs, and fee changes.

Also Read: Is ZCash a buy ahead of its “largest protocol upgrade” in April 2022?

In detail, by increasing the number of ring signatures, Monero would help ensure transactions have better anonymity. As a result, it would be harder to track transactions on Monero. Furthermore, view tags could help reduce scanning times by nearly 40% and speed up wallet-node sync.

#Monero has a network upgrade (hardfork) on July 16th 2022 at block 2668888.

Privacy and performance will be improved! 🎉

The update includes:
🔥Ring sizes will increase from 11 to 16 🔥View tags to speedup wallet/node sync
🔥Multisig fixes
🔥Bulletproof+
🔥 +more!#xmr $xmr pic.twitter.com/jZ5ouk1uqo

— John Foss (@johnfoss69) April 17, 2022

The update would also introduce Bulletproofs, a zero-knowledge system for range proofs on Monero, ensuring faster verification and encryption.

At the time of writing, XMR was trading at $266.3, up 10.28% on the day.