Monero (XMR) Soars 20% Weekly: Can It Repeat ZEC’s Explosion?

While the broader cryptocurrency market has headed south today (October 22), the privacy coin XMR has extended its impressive rally. It currently trades just below $650, up 20% weekly and at its highest level since January.

Analysts are optimistic the uptrend is far from over, with some anticipating the asset will hit a new all-time high soon.

How Much More?

XMR’s latest pump was likely fueled by an announcement coming from Monero. The team revealed on X that GUI v0.18.5.4 ‘Fluorine Fermi’ has been released. In a more detailed disclosure, it said the highlights of this minor upgrade include reopening testnet and stagenet wallets, along with bug fixes.

“This release was the direct result of 2 people who worked to put out 8 commits containing 38 new lines of code. We’d like to thank them very much for their time and effort. In no particular order, they are: selsta and tobtoht,” the team added.

Optimism is now running high, with numerous market observers calling for further gains. X user Sweep predicted that XMR will reach a new historical peak and possibly hit $1,000 in the coming months.

Shortly after, he applauded the asset for having “the best-looking chart right now.” He also reminded his followers of ZEC’s major rally earlier this year, suggesting XMR could repeat the pattern.

Alaoui Capital also issued a bullish forecast. The analyst identified a potential multi-year cup-and-handle structure on the token’s chart and claimed it could be on the verge of an ascent toward $1,000.

For his part, Crypto With Gopal argued that the privacy coin is breaking out of a rectangle pattern, with bulls pushing above the $630-$640 resistance zone after weeks of consolidation between $520 support and resistance.

“Momentum is heating up as buyers attempt to take control! A confirmed breakout could open the door toward $750. Watch for a successful retest to confirm strength. Bullish momentum is surging – breakout watch is ON,” he concluded.

The Bearish Signals

Despite the overall expectations of a further rally, XMR’s exchange netflow serves as a warning that a cool-off may be on the way. According to CoinGlass, inflows have surpassed outflows over the past several days, suggesting investors have shifted from self-custody to centralized platforms, increasing immediate selling pressure.

XMR Exchange Netflow, Source: CoinGlass

Meanwhile, XMR’s Relative Strength Index (RSI) has risen to almost 70. This means the asset is nearing overbought territory, which is typically seen as a pre-correction signal.

XMR RSI, Source: RSI Hunter

In addition, Dr Profit recently cautioned that XMR’s open interest has reached a historic high and noted that the last time the OI jumped this much, the price crashed 66% in just 20 days.

It is important to mention that Santiment rejected that claim. According to the analytics platform, OI closed October 20 at around $198 million, marking the fifth-highest daily close of the past year.

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