By Dmitriy Gurkovskiy, Chief Analyst at RoboForex
After visible fluctuations in the middle of this week, Monero exchange rate reached stability by Friday close to 54.13 USD.
From the technical point of view, on H4 Monero is moving inside the descending channel, thus continuing the formation of descending tendency. At the same time, one should note that after the price updated its lows and there was a convergence on MACD, the instrument resumed growing to break the resistance line. If the price breaks 57.65, it may continue moving towards the upside projected channel and reach 75.50.
If the instrument tests the resistance line and rebounds from it, the price may start a new rising channel with the support level at 51.75. Another thing to confirm the change of the current tendency will be MACD lines’ breaking 0 and fixing above it.
As one can see in the H1 chart, after a divergence on Stochastic, XMRUSD is forming a short-term correction. By now, the instrument has already dropped to 50.0% fibo and then next descending impulse may reach 61.8% fibo.
At the end of November, Monero team reported on the hard fork, when the company implemented an updated mining algorithm. They had to stop using the previous way to mine CryptoNight R coins because it was no longer meeting requirements for efficient mining on mid-tier graphics cards and processors. By improving the algorithm, the company believes that it optimized decentralization parameters and made operation of ASIC and FPGA a bit more complicated.
Apart from changing the mining algorithm, Monero developers improved network anonymity characteristics resulting in a decision to move away from the lengthy payment identification procedure. Also, they changed the approach to indicators of the number of inputs and outputs by the block duration. From now on, incoming transactions are reported to be available only after 10 blocks. In other words, RandomX algorithm must enhance the network security level and improve the mining procedure. However, the question of whether users notice it or not remains open.
Disclaimer: Any predictions contained herein are based on the authors’ particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.
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