As we rightfully predicted yesterday, Monero’s value has taken a small hit in both the USD and BTC market. Bitcoin’s bullish trend eventually causes altcoins to go down in value, and Monero is no exception to this rule. The popular altcoin is trading below US$13 once again, and its BTC value is drifting towards the 0.13 support level. Things could very ugly very fast for Monero in the coming hours, assuming Bitcoin’s upward trend continues.
Monero’s Decline Was A Matter of Time
Although die-hard Monero supporters will not like it when people say so, the value per XMR had to come down sooner or later. Moreover, this may only be a brief retrace in value, depending on how the Bitcoin market evolves over the coming days. For now, Monero is trading well below the US$13 mark, at US$12.9 respectively. That is a 1.38% decline over the past 24 hours, although it seems even this value won’t hold for long.
With Bitcoin soaring past US$950 once again, things are looking rather bleak for nearly every altcoin in existence. Sustaining a higher price point when the money is flowing into BTC is very difficult, even on a good day. Considering how Monero’s USD volume has been anything but impressive as of late, it seems doubtful that the situation will change anytime soon.
That being said, Monero is seeing slightly more USD trading volume today compared to the previous three days. Whether or not this is a temporary boost or a sign of better things to come, remains anybody’s guess for now. We do know Poloniex and Bitfinex are generating more volume, with Poloniex being the slightly cheaper option to buy XMR right now. More competition between these exchanges can only be positive for Monero as a whole.
Blood has been drawn in the XMR/BTC market though. As a result, Monero lost over 2.5% of its value to Bitcoin over the past 24 hours. Not entirely surprising, given Bitcoin’s bullish trend. Moreover, Monero’s high of 0.01438 was nothing but a failed pump attempt, as reality set in rather quickly. A price must be paid, and it appears XMR is slowly heading back to the 0.013 line over the next few days. Expect further losses in the XMR/BTC trading pair if Bitcoin’s uptrend is not broken in the next 24 hours.
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