XMR rallied over 9% on Feb. 6 after the privacy protocol showcased the strong performance of its Rust-based Cuprate node.
Monero (XMR) surged to an intraday high of $238.55, extending its gains to 24% since the beginning of the year. The privacy-focused coin’s market cap surpassed $4.4 billion, briefly making it the 28th largest crypto asset per CoinMarketCap, before settling at $4.28 billion as of the last check during the afternoon Asian session.
Why did XMR rally today?
XMR surged after the project confirmed that its Rust-based Monero node, Cuprate, delivered a strong performance, completing a fast sync in 4 hours and a full verification sync in 20 hours.
In blockchain networks, a node is a computer that participates in maintaining the network by verifying and relaying transactions.
Unlike monerod, the default Monero node software that takes days to fully verify the blockchain, Cuprate speeds up the process while still ensuring independent validation. Faster syncing makes it easier for more users to run full nodes, strengthening Monero’s decentralization and overall network security.
Meanwhile, a hotel in Georgia recently announced that it has begun accepting XMR for payments. The adoption of XMR, adding real-world utility to the token, appears to have sparked fresh interest among investors in the crypto asset.
As a privacy coin that has faced regulatory challenges, resulting in delistings from multiple exchanges over the past year, Monero’s price is also largely driven by community sentiment surrounding the token.
Per data from Santiment, the weighted social sentiment has flipped to positive, indicating that the majority of the community now expects a potential rise in XMR’s price in the short term.
Moreover, interest from derivative traders has also increased for the token. According to CoinGlass data, open interest in the XMR futures market rose by 15.37% over the past 24 hours, reaching $20.98 million. This means more traders are positioning for a potential upside.
XMR technical analysis
On the 4-hour XMR/USDT price chart, the altcoin’s price stood above the 50-day and 200-day exponential moving average, which means bulls were dominating the market when writing.
The MACD and Price oscillator lines also rose upwards, confirming that the strength of the bullish trend is yet to wane. Further, the Relative Strength index has been moving up over the past 72 hours, at 58 when writing. As such, it is safe to assume that there’s more room for growth.
Over the past week, traders withdrew $8.4 million worth of XMR from centralized exchanges, according to CoinGlass data.
If the current demand sustains, XMR could continue its rally to retest the $241.59 reached earlier this month. A sentiment also shared by well-followed market analyst Barney in a recent X post.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
