Monero rockets 82% in 40 days—can privacy coin defy gravity to hit $489?

XMR’s blistering rally leaves traders wondering if the stealth-wealth asset can sustain momentum. Technicals scream overbought, but since when did crypto charts follow logic?

Key drivers: Privacy narrative heats up as regulators circle mainstream chains. Exchange delistings? More like free marketing for the OG anonymity play.

Wall Street analysts scoff at the ’hermit economy’ token—right before quietly allocating 0.5% of their hedge fund’s portfolio to it.

XMR presents a solid bullish case

Source: XMR/USDT on TradingView

The 1-week chart showed an asset breaking out of a multi-year consolidation phase in December. The $183 level, which had been a stern resistance since mid-2022, was flipped to support.

Till April, this support level was retested on multiple occasions.

The Fibonacci retracement levels plotted based on the drop in 2021-22 showed that the 61.8% level was at $246. Earlier this year, this level was tested as resistance, but a breakout was not possible.

Over the past year, the trend of high trading volume has accompanied Monero’s breakout, consolidation, and the subsequent rally this May.

For long-term investors, this was excellent news, as it showed heightened demand and conviction.

The 1-week chart painted an intensely bullish picture. It might be a slightly late for FOMO, but it appeared that XMR was setting up to climb to a new all-time high.

In the coming weeks, the 23.6% and 61.8% extension levels at $396.8 and $489.5 WOULD be the next targets.

Source: XMR/USDT on TradingView

On the 1-day chart, Monero retained its bullish fervor. The CMF was at +0.12 to signal heavy capital inflows.

The trading volume has picked up from April, as evidenced by the rising 20-period moving average for the volume bars.

The MFI did not yet signal an overextended market on the 1-day timeframe. Hence, the strong upward momentum could carry XMR a little higher.

Since the 9th of April, Bitcoin [BTC] has traded within a short-term range.

During this time, Monero managed to rally 13.7%. These returns were on par with ethereum [ETH]. This relative strength against BTC and ETH was another hint of bullish strength.

Holders may wait for a MOVE to $400 and $500 to realize further profits.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion