Monero [XMR] was up 7.18% in the past 24 hours and also witnessed a 25% increase in Open Interest.
This pointed to strongly bullish short-term sentiment, but traders should remember that the late hours of Sunday/early Monday could bring high volatility to Bitcoin [BTC] and the wider crypto market.
With that in mind, short-term traders should consider reducing exposure. Swing traders can have a bullish bias but can also wait for Monday’s trading to give clues about the next move before looking to enter the market.
Here’s why Monero is set to climb to new all-time highs
Source: XMR/USDT on TradingView
In mid-December, AMBCrypto highlighted the potential for a price dip below $400. Such a dip did not come. According to the CMF, the buying pressure has been neutral on the 1-day chart.
The MACD and the moving averages captured the strong bullish momentum, especially since the start of January.
The $517.6 all-time high remains the target now, and new ATHs look likely for Monero.
Should XMR bulls be worried?
The weekend volatility and a Bitcoin downturn could upset some XMR traders over the next 24 hours. The evidence at hand shows that the privacy narrative was going strong.
XMR has demand, and any price dips should halt at the $470 demand zone.
Traders’ call to action- Time to buy XMR
Source: XMR/USDT on TradingView
The 1-hour chart showed that the 23.6% Fibonacci extension level at $480 served as support in recent hours of trading and led to an uptick in price. The technical indicators were also firmly bullish.
Traders should be wary of the $490-$500 local high, which has been a supply zone in the past month.
Another report underlined the $460-$470 as being a key short-term supply zone. On Saturday, the 10th of January, this area was flipped from supply to demand. It further bolstered the short-term bullish view of Monero.
Final Thoughts
- The Monero price action has been bullish recently, and the privacy token could make new all-time highs soon.
- Traders should beware of weekend volatility, but the $460-$480 area is a key demand zone that buyers were likely to defend.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
