While the broader cryptocurrency market has headed south today (October 22), the privacy coin XMR has extended its impressive rally. It currently trades just below $650, up 20% weekly and at its highest level since January.
Analysts are optimistic the uptrend is far from over, with some anticipating the asset will hit a new all-time high soon.
How Much More?
XMR’s latest pump was likely fueled by an announcement coming from Monero. The team revealed on X that GUI v0.18.5.4 ‘Fluorine Fermi’ has been released. In a more detailed disclosure, it said the highlights of this minor upgrade include reopening testnet and stagenet wallets, along with bug fixes.
“This release was the direct result of 2 people who worked to put out 8 commits containing 38 new lines of code. We’d like to thank them very much for their time and effort. In no particular order, they are: selsta and tobtoht,” the team added.
Optimism is now running high, with numerous market observers calling for further gains. X user Sweep predicted that XMR will reach a new historical peak and possibly hit $1,000 in the coming months.
Shortly after, he applauded the asset for having “the best-looking chart right now.” He also reminded his followers of ZEC’s major rally earlier this year, suggesting XMR could repeat the pattern.
Alaoui Capital also issued a bullish forecast. The analyst identified a potential multi-year cup-and-handle structure on the token’s chart and claimed it could be on the verge of an ascent toward $1,000.
For his part, Crypto With Gopal argued that the privacy coin is breaking out of a rectangle pattern, with bulls pushing above the $630-$640 resistance zone after weeks of consolidation between $520 support and resistance.
“Momentum is heating up as buyers attempt to take control! A confirmed breakout could open the door toward $750. Watch for a successful retest to confirm strength. Bullish momentum is surging – breakout watch is ON,” he concluded.
The Bearish Signals
Despite the overall expectations of a further rally, XMR’s exchange netflow serves as a warning that a cool-off may be on the way. According to CoinGlass, inflows have surpassed outflows over the past several days, suggesting investors have shifted from self-custody to centralized platforms, increasing immediate selling pressure.
Meanwhile, XMR’s Relative Strength Index (RSI) has risen to almost 70. This means the asset is nearing overbought territory, which is typically seen as a pre-correction signal.
In addition, Dr Profit recently cautioned that XMR’s open interest has reached a historic high and noted that the last time the OI jumped this much, the price crashed 66% in just 20 days.
It is important to mention that Santiment rejected that claim. According to the analytics platform, OI closed October 20 at around $198 million, marking the fifth-highest daily close of the past year.
The post Monero (XMR) Soars 20% Weekly: Can It Repeat ZEC’s Explosion? appeared first on CryptoPotato.