Reasons for Monero's Price Increase

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  1. High demand for privacy: With increasing regulation and privacy concerns, Monero's anonymity features are highly sought after.
  2. Protection against quantum hacking: The upcoming FCMP++ upgrade will significantly enhance the network's resistance to potential attacks from quantum computers.
  3. Use in covert operations: Monero's utilization for laundering large sums (e.g., after the $330M Bitcoin theft) highlights its effectiveness in ensuring anonymity.
  4. Increased miner activity: Monero mining has reached an all-time high, signaling heightened interest and activity within the network.


Technical Analysis

However, it's highly likely that Monero's price surge has ended. Technical indicators point to the asset being severely overbought. On the weekly timeframe, the RSI was already above 86%. A bearish divergence has appeared on the daily timeframe.

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Idea

The emergence of bearish patterns could be a strong signal for opening a short position.

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