Monero price eyes $500, but $420 stands as the next key hurdle

Monero price rose for three consecutive days as investors bought the dip following last week’s crash. Monero ( XMR ) climbed to $365, its highest point since May 28, and now sits 16% above its lowest level from last week. The rebound happened even as Bitcoin ( BTC ) and other cryptocurrencies wavered. It happened as the demand for privacy coins like Horizen ( ZEN ) and Zcash ( ZEC ) jumped. On-chain data shows that Monero’s exchange outflows surged to $8.9 million last week—the largest jump this year. Exchange outflows typically indicate that investors are moving tokens into self-custody, a potentially bullish signal. Monero’s funding rate has remained positive since May 15, suggesting that traders expect future prices to be higher than the current spot price. A positive funding rate is often viewed as a bullish catalyst, as crypto.news reported . You might also like: Best XRP rivals to buy for the next crypto bull market Monero token has been in a strong bullish trend in the past few months after spending three years in a consolidation phase. This rebound happened after a US court ruled against the Treasury Department for sanctioning Tornado Cash, a crypto mixer. The department was then forced to remove sanctions earlier this year. XMR’s momentum further accelerated after hackers reportedly used the coin to move over $300 million in suspected stolen funds. Monero is considered ideal for illicit transactions due to its privacy-enhancing features, including ring signatures, stealth addresses, and ring confidential transactions. These technologies ensure transaction anonymity. For example, ring signatures obscure the sender by blending their signature with decoys, while stealth addresses generate a one-time address for each transaction, further masking recipient details. Monero price technical analysis XMR price chart | Source: crypto.news The daily chart shows that XMR has been in a sustained bull run since February 2024, when it was trading at $100.90. The token remains above both the 50-day and 100-day Exponential Moving Averages. It has rebounded to $366 from last week’s low of $312. The Relative Strength Index and the MACD have all pointed upwards. For the rally to continue, Monero must break above resistance at $420, its highest point this year. A successful move above this level would invalidate the double-top pattern, whose neckline sits at $312, and could signal a further rally toward $500. Conversely, a drop below the $312 support would invalidate the bullish outlook. You might also like: Will the Pi Network coin price rise or fall in June?