While cryptocurrencies such as Bitcoin, Ethereum, Chainlink or Binance coin are already setting new all-time highs, there are others that have fallen asleep, such is the case of Monero (XMR).
Today the price of XMR is $ 152.97, accumulating a minimum gain of 1.15% in the last 24 hours, and 6.6% in the last 7 days.
Its market capitalization is $ 2,741 million, which makes it the 19th position among the largest in the crypto ecosystem.
Today the task is to try to find out how undervalued this cryptocurrency is currently, let’s get to it.
What does the volume of Monero (XMR) tell us?
Probably one of the simplest and most useful data to understand the adoption and growth of a chain is the volume of transactions.
In the case of Monero, the volume in dollars of the last day was about $ 1,147 million, which means that its chain is moving almost half of its market capitalization daily, a figure without a doubt exceptional.
But more surprising is this figure when we compare it with the one that moved on the day of Monero’s all-time high.
When XMR’s capitalization hit a record $ 7.34 billion market capitalization in early 2018, volume that same day was just $ 295 million.
Undoubtedly, this already gives us important signs of how adoption has not advanced at the same speed as the price, but it is most likely that they will begin to approach very soon.
Below is a graph where we observe the great growth in the volume of transactions in the XMR network, compared to the circulation of coins.
As you can see, the curve for new currencies has flattened a lot, while adoption is increasing strongly. Simple, with greater demand, with a supply that does not grow too much, the price increases.
Monero transaction volume and circulation graph. Source: Coinmetrics.
Monthly chart shows a big bullish scenario
Although the brief analysis of the situation of Monero (XMR) that I present seems simple, I think it can be quite reliable.
Being one of the largest cryptocurrencies in the ecosystem, and a leader in the privacy segment, XMR has a long way to go.
And the price as always you have not been warning them. After a long corrective period, this crypto is resuming its long-term trend.
Despite the low bullish volume in recent months, probably a product of the great attention that Bitcoin and even Ethereum are getting, we may soon see volatile jumps to the upside.
A major boost could be about to begin
Right now I consider it a good opportunity to buy XMR, due to the little risk that could be assumed.
With continued lows and highs ever higher, Monero is picking up demand to kick off a mid-term trend momentum.
If nothing extraordinary happens in the crypto ecosystem, or closely linked to this currency, there is no reason to think about falls.
Support at $ 138.93 seems to be a good place to stop selling. If it is violated, we will see an accentuation of the selling pressure, but knowing the long-term trend, there is not much to worry about.
All our publications are informative in nature, so in no case should they be followed as investment advice.
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