Monero outperforms the crypto market as its dark web use rises

Monero (XMR) has outperformed the majority of the top crypto market participants as its use outside exchanges increases. While some argue that any type of use is good, others don’t believe so.

Fundamental analysis

Monero can be looked at from many perspectives, and is both in a great and a bad spot at the same time. While the usage of the cryptocurrency is rapidly rising, the majority of its use is on black markets. However, many analysts argue that the coin would have no value if it was used only in black markets. Other than that, the coin recently got delisted by a couple of exchanges as a result of regulatory uncertainty around privacy coins.

With that being said, its weekly outlook is slightly tilting towards the bull-side, as the only non-subjective thing is its increased use.

At the time of writing, XMR has outperformed the majority of the market on a weekly level, making 22.54% week-over-week gains. On the other hand, Bitcoin and Ethereum increased their week-over-week value by 6.58% and 2.57%, respectively. XMR is currently trading for $165.4, representing a month-over-month price increase of 5.58%.

XMR/USD technical analysis

Monero (XMR) did relatively poorly on a monthly basis, but recovered greatly in the past week. Its price is on a steady rise ever since March 2020, with the price increase intensifying in the since August 2020. XMR/USD is trading along the ascending channel, which it tried to escape to the upside for the first time in months. However, the move was quickly nullified as Bitcoin pulled the whole market back. XMR/USD is currently recovering from the heavy retracement, and is most likely heading towards the upper trend line.

XMR doesn’t have fully set resistance levels, but the zone above $165 is fairly dense with profit-taking orders. On the other hand, its downside is protected by the 21-day and 5-day moving averages (which have been relevant in the past) as well as the bottom line of the ascending channel.

XMR’s RSI on the daily time-frame hovered around the overbought area two days ago, but quickly descended to regular levels. Its current RSI value is 56.77.

XMR’s hourly time-frame shows us a very unstable price trajectory on heavily increased volume, where a steady increase in price from three days ago got completely deleted (and then some) by the pullback. Monero might be a good buy opportunity at the moment as it seems to be on its way to full recovery from the aforementioned downturn.