Monero (XMR) witnessed a significant 9% increase on February 6, as the project highlighted the efficiency of its Rust-based Cuprate node.
The privacy-centric cryptocurrency peaked at an intraday high of $238.55, marking a 24% rise since the beginning of the year. XMR’s market capitalization briefly surpassed $4.4 billion, making it the 28th largest cryptocurrency on CoinMarketCap before stabilizing at $4.28 billion.
What Triggered XMR’s Price Rally?
The price surge was largely attributed to the confirmed success of Monero’s Cuprate node, which significantly improves blockchain synchronization speeds. While the conventional monerod node software requires days for full verification, Cuprate enhances efficiency by completing a fast sync in just 4 hours and a full verification sync in 20 hours.
Faster synchronization allows more users to operate full nodes, improving Monero’s decentralization and security. Additionally, a hotel in Georgia recently announced that it now accepts XMR payments, increasing real-world use cases for the token and boosting investor confidence.
Market Sentiment and Derivatives Trading
Despite regulatory scrutiny leading to delistings from multiple exchanges, Monero’s price is often influenced by community sentiment. Data from Santiment suggests that overall sentiment has turned positive, indicating expectations of further price appreciation.
Derivatives market activity has also surged. CoinGlass data reveals a 15.37% increase in XMR futures open interest over the past 24 hours, reaching $20.98 million. This suggests heightened speculative interest in Monero’s potential upside.
XMR Technical Indicators
On the 4-hour XMR/USDT chart, the cryptocurrency is trading above both the 50-day and 200-day exponential moving averages, signaling strong bullish momentum. Technical indicators like the MACD and Price Oscillator show an upward trend, reinforcing the positive outlook.
The Relative Strength Index (RSI) has climbed to 58 over the past 72 hours, suggesting room for further growth. Additionally, traders have withdrawn $8.4 million worth of XMR from centralized exchanges in the past week, indicating a growing preference for self-custody.
Future Outlook
If demand remains strong, XMR could attempt to retest the $241.59 level reached earlier this month. Well-known market analyst Barney echoed this sentiment in a recent post, suggesting that Monero may continue its bullish momentum in the near term.
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