Monero is a privacy-based, open-source cryptocurrency that allows confidential blockchain transactions or makes them optional. There are many cryptocurrencies that allow public viewing of these transactions. For users who want anonymity in blockchain asset transactions, Monero is the best choice for them.
Monero was launched in 2014. In the last few years, it has gained popularity, but now it is facing issues due to government regulations related to anonymous blockchain transactions. The Monero blockchain is designed to hide the senders’ and recipients’ identities and the amount they transact. It also provides a public ledger to display transactions.
The mining process of Monero is also unique, and it follows an egalitarian concept where everyone gets equal opportunities and rewards both the mining pools and individuals. The developers did not save the stake for themselves, and they depend more on contributions from the community and support for crypto development.
It runs on delegated Proof of Stake consensus. The key concepts of the working process are ring signature and stealth addresses. The ring signature hides the sender’s identity, whereas the stealth address makes the recipient anonymous.
A stealth address is a one-time transactional address between the sender and receiver to conceal the identities. However, is it a revenue-generating business? You have to analyze the fundamental and technical aspects of Monero before investing.
At the time of writing, XMR was trading at around $117, and it has been consolidating between a range of $110 to $200. Though the MACD indicator is bullish, and RSI is stable at around 37, we do not think it is the ideal time for long-term investment.
On the weekly chart, XMR has broken the support of $130. Now it is trading around the lower range of the Bollinger Bands with a weak MACD and RSI, which does not suggest bullishness in the market.
The current XMR may be a bottom for the long term and may turn bullish within a few months. Indeed, it is tough to predict the bottom of a coin, especially in a bearish phase. That is why you must wait for the right time before investing in XMR for the long term.
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