Monero [$XMR] is showing strong upside momentum. After failing to hold $500 earlier, the altcoin’s bullish pressure strengthened, reclaiming $500 and hiking to a high of $520.
At press time, Monero was trading around $516, marking an 11% surge on the daily charts. Over the same period, the altcoin trading volume surged 206%, reflecting strong market activity and steady capital flows.
Why is Monero upside pressure holding?
While Monero’s rebound was not driven by events over the past days, investors have shown optimism with the recent structural upgrade.
As such, the THORChain network upgrade introduced native support for Monero swaps. The THORSChain 3.2 upgrade introduced Monero swaps against Bitcoin [BTC], Ethereum [ETH], and stablecoins.
This improvement has significantly improved $XMR access and liquidity. Since it allows swaps $XMR non-custodially on cross-chain DEX, it has become a major boost because of Monero restrictions on centralized exchanges.
Are speculators chasing the rally?
Incentivized by this development, traders returned with strength across the market. Speculators, for example, have shown greater determination to capitalize on these market gains.
According to CoinGlass data, Monero’s Open Interest (OI) surged 16% to $304 million at press time, while the Derivatives Volume rose 319% to $325 million.
When OI and volume rise in tandem, it reflects increased market participation and capital inflow. Thus, traders deployed significant capital into opening new positions.
Meanwhile, the Long/Short Ratio climbed above 1, excluding Binance top traders. At 1.08, the ratio implied that most traders were bullish and were betting on more gains.
Can $XMR sustain these gains?
Monero‘s bullish pressure has intensified, with demand becoming sustainable, which in turn has strengthened upward momentum. In fact, a look at the momentum indicators validates this view. The altcoin’s Stochastic Momentum Index (SMI) extended its surge, hiking to 60 as of writing.
With the SMI edging deep into the bullish zone, it suggested that upside momentum is strong with bulls enjoying commanding control.
Likewise, the Relative Strength Index (RSI) also extended its surge, rising to the overbought zone. At 80, RSI further confirms buyers have total control of the market.
As of now, these two indicators signal that the prevailing trend is most likely to continue. Therefore, if the market demand recently witnessed holds, Monero will reclaim $527 and target $546 in the short term.
However, if the attempted upside move fails again, $XMR is likely to fall below $500, with $460 as a key support level.
Final Summary
- Monero extended its bullish structure, rising 9%, to reclaim and flip $500, reaching a local high of $520.
- $XMR’s upside momentum although driven by strong demand , recent THORChain upgrade has incentivized investors to return.