Things are starting to look very bad for Monero all of a sudden. Whereas it was widely believed XMR would easily hold on to its US$13 price, things have started to decline in spectacular fashion. Significant losses are recorded in both the USD and BTC markets, indicate more money is flowing to bitcoin once again.
Monero Goes Down The Slippery Slope
It has to be said, an extended period of status quo will make investors and traders quite nervous. In the case of Monero, things have been relatively quiet for some time now, which means a big spike is coming soon. Unfortunately for XMR holders, this spike turned out to be a negative one, pushing the price to well below US$12.5 once again.
It is a bit unclear where this sudden drop comes from, although one could argue investors are converting their money back into bitcoin right now. With the Monero price dropping from US$13.43 to US$12.44, things are not looking all that great right now. Then again, the price hit a US$11.48 low earlier this morning, yet rebounded relatively quickly. There is still a possibility XMR will climb back to US$13, yet it seems unlikely right now.
Despite this downfall, there is one positive not for Monero, as its USD trading volume seems to be picking up slightly. With nearly US$350,000 worth of XMR trading on Poloniex alone, it appears the USD market is finally warming up to Monero. This is a positive development for this altcoin, as an influx of fresh capital might drive the price up once again. Then again, this may also be a temporary bounce before the USD trading volume dries up once again.
The biggest threat to Monero’s price comes from the bitcoin trading market. A 6.24% loss has been recorded over the past 24 hours, although things could have been much worse. At one point, XMR reached 0.01071 BTC, although the value rebounded back to the 0.0117 mark at the time of writing. Although bitcoin has not made any significant value gains over the past few hours, it is likely XMR will remain below the 0.012 threshold for quite some time.
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