Monero (XMR) has emerged as the best-performing altcoin among the top 100 cryptocurrencies over the past 24 hours. This development comes amid the sideways movement in the market as most altcoins, which saw double-digit gains last week, have had to deal with consolidation or decline.
At the time of writing, the 45th most valuable cryptocurrency is trading at $201.75 and is up just 2%. Will the price continue to rise?
Monero Rises Slightly, But Traders Remain Bullish
All last week, BeInCrypto’s daily analysis of the biggest altcoin gainers saw double-digit gains. But today, due to low buying pressure, that changed, making XMR the best-performing altcoin.
Despite the slight increase, it appears that traders expect the XMR price to trade higher in line with the funding rate. The funding fee is the cost of maintaining an open position in the derivatives market.
When the funding rate is positive, it means that those betting on the upside (the “longs”) are paying a fee to those betting on the downside (the “shorts”) to keep their positions open. This generally reflects an optimistic sentiment in the market. When the funding rate is negative, the opposite is true: the “shorts” are paying the “longs,” indicating a more pessimistic sentiment in the market.
Monero Funding Rate. Source: Santiment
Based on data from Santiment, Monero's funding rate is 0.14%, indicating that most positions lean towards the bullish side. If this remains the same, then the price of XMR will likely increase due to growing demand in the derivatives market.
Additionally, Weighted Sentiment, which measures the market’s perception of a cryptocurrency, jumped into the positive zone. When sentiment is positive, it means that the majority of comments about the asset are bullish.
On the other hand, a negative reading indicates that the average sentiment around the asset is bearish. Given the positive sentiment reading for XMR, this suggests that growing optimism could drive demand for the altcoin.
Monero Weighted Sentiment. Source: Santiment
XMR Price Prediction: Back to the Top?
The daily chart also seems to agree with an increase in the price of XMR, particularly because of Bull Bear Power (BBP). BBP measures the strength of bulls compared to that of bears.
When the BBP rises, it means the bulls are in control, and the price could rise. On the other hand, a drop in the indicator indicates that the bears have the upper hand, and the price may fall. A closer look at the XMR price chart shows that it has recently fallen from a peak of $222.44.
Monero Daily Analysis. Source: TradingView
However, with the bulls in control, the altcoin’s value could reverse this trend. If validated, then the token’s price could surge to $227.48 or beyond. However, if XMR fails to hold the $201.30 support, the value could drop to $186.64 and fall out of the top-performing altcoin position.
The article Monero (XMR) stands out as the best-performing altcoin appeared first on BeInCrypto Brasil.
