Monero Price Prediction

The price of XMR today is $404.39, changing within the past 24 hours for 1.39% and 7.95% over the week. XMR’s price action is characterized by the Bullish sentiment.

The current volatility index for XMR is measured at 6.77%. XMR’s circulating supply is 18.45M. In the big picture, the highest price XMR has reached is $593.419 and its lowest observed price was $0.213.

What is Monero (XMR)?

Monero is a cryptocurrency protocol that by default masks information about the transaction participants and amounts. It does so using cryptographic techniques such as ring confidential transactions, which eliminate the need for the ledger to publish information openly.

Over the years hundreds of developers have contributed to the codebase, which was originally based on the CryptoNote protocol described by Nicolas von Saberhagen. To this day, Monero does not have a foundation or a corporate entity backing it, it is run purely by the community effort.

XMR is the ticker that the cryptocurrency uses. The coin is mineable with CPUs, and each new block rewards approximately 0.6 XMR plus transaction fees.

For more information on Monero’s origins and prospects, we highly recommend reading our Beginner’s Guide to XMR before this article.

What Influences the Price of Monero (XMR)?

Protocol Updates

Generally speaking, protocol updates have a positive impact on the price of an asset. Improving usability and stability can extend the impact beyond the moment of announcement and anticipation.

However, in Monero’s case, the protocol has not had significant upgrades in a while. The latest feature that was close to generating interest is atomic swaps, and its XMR-to-BTC specification was released in August 2021.

On the one hand, it is reasonable that the community does not use constant announcements just to generate hype, and focuses on building the project. Furthermore, they are actively opposed to fads that can hurt the integrity of the protocol, such as Mordinals. Fashioned after a controversial protocol for digital artifacts for Bitcoin, called Ordinals, Mordinals would decrease the XMR’s fungibility and privacy, should they ever gain notoriety.

On the other hand, it is hard for a decentralized team to consistently ship upgrades and maintain developer consensus, hence the slow growth. Besides, the team and contributors may be even more discouraged given the news that we will mention next.

Security

As a privacy coin, Monero places high emphasis on the security of the protocol. This includes things like the integrity of the opaqueness of transactions or simply resistance to attacks. However, more and more evidence of Monero lacking in this department has been coming to light recently.

In November 2023, Monero contributors shed light on the drained Community Crowdfunding Wallet after two months of silence. In January, Finnish authorities presented in a press conference about a cyber ransom case, alleging that they traced the perpetrator’s Monero transactions.

Except that both these incidents happened due to faults unrelated to the Monero protocol. Despite that, the damage was done, and some of the onlookers took the headlines at face value.

Nevertheless, the surmise that XMR transactions might be traceable after all did not appear in the news for the first time. Some leaks suggested that analytics company Chainalysis has the know-how to peek behind the curtain of the obfuscated blockchain. Although, experts infer that their methods operate in probabilities rather than certainties.

Listings and Delistings

As far as trading goes, having diverse markets and arbitrage opportunities usually positively impacts price movements. In the case of privacy coins, it is slightly more complicated.

Centralized exchanges are not very likely to list privacy coins due to regulatory concerns. Those that had Monero trading pairs even had to remove them. The latest and most significant delisting announcement so far has come from Binance. Once the largest centralized crypto exchange, after the settlement with the U.S. Department of Justice, Binance now has to adhere to the highest standard of security and compliance.

However, the rise in popularity of decentralized exchanges allowed for more markets for the Monero network. Although most of DeFi uses wrapped Monero, which does not have the privacy features of the original protocol, the price of XMR is still affected by trading on DEXs. The downturn also was treated by some traders as a buying opportunity, evidenced by a bounce from the short-term drop.

XMR Sentiment

Which way the market swings today? Overall, technical indicators show that currently, the sentiment in the XMR markets is Bullish. The Fear and Greed Index for XMR today is in the 23 (Extreme Fear) zone.