Monero Soars 50% As Crypto Market Weakens, What’s Behind the Rally?
April 21 2022 - 6:00PM
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Popular privacy coin Monero (XMR) has been on a rally since the
start of 2022. The cryptocurrency appears to be moving on its own
as the crypto market trends sideways. Related Reading | Monero
And Zcash Take Off With 15% Gains, Here’s What May Have Spurred The
Rally Recently, XMR bulls are displaying more strength. At the time
of writing, XMR trades at $285 with a 6% profit in 24 hours, a 34%
and 50% profit in the last two weeks and 30-days, respectively. As
announced by one of Monero’s maintainers via a post, the network
will undergo an upgrade on July 16th, 2022, at the height of block
2.6 million. The “Fluorine Fermi” update will introduce new
features to the network. As the developer stated, Monero will
increase its ring size from 11 to 16. The ring size is a term to
refer to the total number of signers in an XMR transaction. As part
of this network’s unique model, the update will provide users with
more base privacy. In addition, the network will implement an
upgraded version of its Bulletproofs algorithm to decrease its
transaction size by around 7%. This change is supposed to improve
the network’s scalability by making “every transaction lighter and
faster”. On the latter, the network will reduce the wallet’s sync
time by around 30 to 40%, the post said, and will implement a
change to Monero’s fee model. Thus, users can expect to see an
uptick in the network’s “security and resilience”. As the update
will be deployed via a Hard Fork, users and node operators will
need to update their software. The maintainer made the following
request to the users: A new release will be announced before the
network upgrade (around the 16th of June). You will only have to be
using the updated software by the time the network upgrade occurs
(16th July). To the end user, it will be like a simple software
update. #Monero will undergo a network upgrade on July 16th,
2022:https://t.co/9NKlGtqXAn All users will need to do is keep
their favorite wallet up to date, update their nodes once v0.18 is
released (~June 16th), and enjoy even better digital cash
afterwards 😎 — Monero (XMR) (@monero) April 20, 2022 Could Monero
Be Spelling Danger For The Crypto Market? It’s possible that
Monero’s recent price action is due to its upcoming network update.
As mentioned, they are substantial and will provide the users with
interesting new features. Data from Material Indicators (MI)
records an increase in buying pressure from retail investors during
April. At the same time, investors with ask orders larger than
$10,000 have been selling into the rally. Unless larger investors
classes step in, XMR could be at risk of a short-term decrease.
Related Reading | Monero (XMR) Price Slides As Canada Includes
Crypto In Emergencies Act Additional data provided by Jarvis Labs
indicates a potential danger for the entire crypto market.
According to their “Dino Index” (comprise of Ethereum Classic,
Zcash, Litecoin, Bitcoin Cash, and others), a metric to track the
performance of these assets to show their inverse correlation with
the crypto market, there could be some obstacles ahead. Jarvis Labs
said via their Telegram Channel: Quite evident that majority of the
time when these dino coins rise and btc rises, better to look at
profit taking or hedging the risk and look for market tops.
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