If you bought Monero [XMR] at its August high so far, you’d be down about 11.5% at its print price of $ 153.55.
And, if you bought it at a low in June, you’d still be up around 58%. These results describe Monero as a healthy option to ride the wave of bullish recovery following the May and June slump.
But is it still a good option for the next result?
A look at Monero’s past performance can help formulate a decent conclusion. A comparison might also be useful. For example, Bitcoin’s withdrawal took six days while Monero’s took only three days.
This underscores XMR’s resilience against bearish pressure, although it eventually succumbed to selling pressure.
Monero’s monthly high represents a 79.8% rise from the June low.
This means that it outperformed Bitcoin, which recorded a 42.08% rise from its June lows to its August highs.
More importantly, XMR manages to recover quickly whenever it crashes.
Its price at press time had already risen 11% after bouncing off the Fibonacci level of 0.236.
Source: TradingView
The strong recovery is another sign that investors are optimistic about XMR.
At press time, it was undervalued compared to Bitcoin considering their circulating supplies and price levels.
This good question makes it a good choice in case of another crash, as well as during a rally, as it has already shown.
Monero price outlook
Monero is already recovering from the last crash. However, some investors suggest that the June-July rally was a relief rally and that prices will fall to the downside.
Perhaps its chain metrics can help provide a clearer view of what to expect. Its rally over the past two days has been supported by surprisingly low volumes.
Source: Santimento
The low volume suggests the upside could be supported by the buildup of whales. Indeed, XMR has managed to maintain a relatively healthy sentiment in the derivatives market.
Binance’s funding rate has dropped slightly from its decline in the second week of August.
The sentiment confirms that XMR is set to garner strong demand if it suffers another crash.
Additionally, Monero’s social dominance metric has dropped substantially over the past 10 days.
A spike in social dominance can help add more volumes and potentially support a more robust price movement.
Source: Santimento