The Monero market has undergone some rather negative changes over the past few days. Speculators had indicated a downtrend was as looming on the horizon, and it appears they have been proven right. Monero lost a chunk of value in both the BTC and USD market. A sign of things to come, or will we see more sideways action over the next week or so?
The Sharp Monero Dip Was A Matter of Time
A lot of sideways action is never a positive thing in cryptocurrency. Although this hints at price stability, it is only a matter of time until speculators grow impatient and pull out their funds in favor of more lucrative opportunities. For Monero, that switch occurred in the past 48 hours, resulting in a near 10% decline in value. It is not impossible to recover from by any means, but XMR is looking far less appealing to investors right now all of a sudden.
The XMR/BTC market saw a significant decline, although it remains unclear as to why this happened exactly. Whereas Monero was valued at over 0.014 Bitcoin a few days ago, the value dipped to 0.01272 BTC. This shift occurred despite an increase in trading volume on January 13rd, which was followed by a volume decline on January 14th. Today looks like a very strong day for XMR trading regarding volume, although that may not result in price gains.
It is rather strange to see XMR go down in value against Bitcoin, considering the latter has not seen any significant gains over the past week. Bitcoin’s value saw ups and downs, but the overall trend is utterly flat. This should have translated into a BTC value for Monero, yet speculators and traders felt it was the right time to start crashing the price.
On the USD front, things are not looking much better for Monero right now. For the first time in quite a while, XMR is nearing the US$10 valuation. That is a 10% decline compared to just a day ago. Monero even dropped below US$10 for a brief moment earlier today, yet seems to be stabilizing briefly. Then again, a further decline below US$10 is not unlikely, and XMR may even go below US$9 if that happens.
Last but not least, the Monero cap continues to decline and is now well below US$150m once again. Just over a week ago, Monero’s market cap was well above US$200m. This is an excellent illustration of volatility in the cryptocurrency markets, as nothing is ever certain to mention its value for an extended period.
Header image courtesy of Shutterstock