Monero’s Sudden Surge: Hacker Moves $330M – Is Now the Time to Buy?

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  • Lo and behold! XMR’s 24-hour rise is attributed to a hacker who brought an avalanche of liquidity to the market!
  • Market sentiment, on the other hand, is throwing cold water on any long-term hope for this rally, with key fundamentals in decline.

In the last 24 hours, Monero [XMR] experienced an explosive 50% spike in price, thanks to a hacker’s “generous” liquidity inflows. But, alas, the excitement was short-lived—XMR’s price quickly plummeted by 17%. A real rollercoaster, isn’t it?

AMBCrypto’s analysis shines a light on the lack of solid fundamentals backing this wild ride. It seems the party might be over soon, with further losses lurking around the corner.

Why is XMR heading north? (Spoiler: Not because of its glowing fundamentals)

According to ZachXBT, the on-chain detective, the recent XMR price surge can be traced back to a suspicious address that moved a substantial 3,520 Bitcoins (worth a jaw-dropping $330.7 million!) to XMR. Oh, and guess who’s allegedly behind it? A hacker! Quelle surprise! These funds moved through various exchanges before being converted to XMR.

This massive liquidity flood induced a temporary rally, driving the price up over 50%. Party time, right?

However, market sentiment paints a different picture. At the time of writing, the OI-weighted funding rate—used to measure market sentiment based on Open Interest and funding rates—plummeted to its lowest point of the year, reaching -0.5757%. Talk about a buzzkill.

Such a steep drop is rare to see in any asset, and it seemed to be at odds with the monstrous 3,200% volume spike. This decline in the derivatives market suggests traders lack confidence in XMR’s future, and some might even be setting up their short positions. Ouch.

When an asset is drowning in sell contracts, the price tends to take a nosedive. And that’s precisely what looks likely here. AMBCrypto’s analysis backs this up with more evidence pointing toward a potential price drop.

But let’s not get too ahead of ourselves—AMBCrypto also suggests that this rally might be a fleeting one, with no fundamentals to keep it afloat.

Technical Indicators: Bouncing Against the Rally

The Relative Strength Index (RSI), which helps determine whether an asset is overbought or oversold, gives us a clue about XMR’s fate. Currently, the RSI is at a lofty 83.67, far above the 70-mark, signaling that XMR might be overbought. Guess what that means? A likely fall to lower lows! 🏞️

Meanwhile, the CMF (Chaikin Money Flow), which measures buying and selling pressure, shows that sellers are dominating the market. It’s like the sellers are having a fiesta while the buyers are sitting out. The CMF dropped from 0.34 to 0.22, which is a clear sign that the bears are in control.

But hold your horses! The CMF is still in the positive zone, suggesting that buying activity could make a comeback. So, maybe this drop is just a hiccup. We’ll see. 🤷‍♂️

What Lies Ahead for XMR’s Price?

Given the overbought RSI reading and the growing selling pressure, XMR has now hit a resistance zone at $284.88. This has pushed the price south, and further decline seems more probable than not.

According to AMBCrypto’s analysis, XMR might drop to around $231.96, where it could find some support for a possible rebound. Fingers crossed, right?

In an even gloomier scenario, if XMR falls below the $231.96 support, it might just continue its downward spiral toward the lower support level at $199.40. Time for a reality check?

All in all, with market fundamentals in such a sorry state, those thinking of jumping in now might want to reconsider. A significant price decline could be just around the corner. 😬

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2025-04-29 09:23