Monero (XMR) has emerged as the leading altcoin performer within the top 100 cryptocurrencies over the past 24 hours. This performance comes at a time when the broader market is experiencing a period of stagnation. Many altcoins, which previously enjoyed double-digit gains just last week, are now facing a phase of consolidation or even decline.
Currently, Monero holds the position of the 45th most valuable cryptocurrency, trading at $201.75 with a modest 2% increase. The critical question remains: Will its price continue to ascend?
Throughout last week, daily analysis consistently highlighted significant altcoin gains, characterized by double-digit surges. However, with reduced buying pressure now, the landscape has shifted, allowing Monero to secure its place as the leading altcoin performer.
Despite this moderate increase, traders remain bullish on XMR’s prospects, as indicated by the funding rate. This metric, reflecting the cost to maintain an open position in the derivatives market, is a key indicator of market sentiment.
A positive funding rate suggests that long positions are paying short positions a fee, indicating a bullish outlook. Conversely, a negative funding rate signals a bearish sentiment, where shorts compensate longs.
Santiment data reveals that Monero’s funding rate stands at 0.14%, showing a predominant tilt towards bullish positions. If this persists, Monero’s price could climb due to rising demand in the derivatives market.
Moreover, the Weighted Sentiment measure, which assesses market perception of a cryptocurrency, has entered positive territory. A positive sentiment suggests a general bullish outlook, while negative readings indicate bearish perspectives. The current positive sentiment surrounding XMR supports the hypothesis of growing optimism and potential increased demand for the altcoin.
The daily price chart further supports the possibility of an XMR price increase, particularly highlighted by the Bull Bear Power (BBP) indicator. The BBP compares the strength of bull and bear market participants.
An upward trend in BBP demonstrates bull dominance, potentially leading to a price rise. Conversely, a decline suggests a bearish advantage, possibly resulting in a price drop. Recent analyses show XMR's price dipped from a high of $222.44.
However, as bulls maintain control, the altcoin's value might reverse its downward trend. If this scenario unfolds, XMR’s price might escalate to $227.48 or even higher. Nevertheless, failure to uphold the $201.30 support level could lead to a decline to $186.64, possibly losing its top-performing altcoin status.