The Monero price has led one of the most solid runs in the current market, rising nearly 56% over the past seven days. According to analyst Ananda Banerjee, the asset is barely 2% away from reclaiming its all-time high situated near $721. Despite a slight cooling in the last few hours, the technical structure of the digital asset remains bullish in a very aggressive way.
On the other hand, money flow through the Chaikin Money Flow (CMF) indicator shows a signal of caution for investors. Although the value continues to rise, institutional capital is not accelerating its entry with the same force as at the beginning of the month. The CMF remains below the critical 0.38 level, suggesting that large players are waiting for clear confirmation before continuing to buy.
Likewise, this behavior indicates that, while there is no massive selling pressure, Monero’s privacy technology faces a moment of observation. During the last quarter, XMR has accumulated a growth of 120%, positioning the project as an undisputed leader among financial anonymity coins today. In this way, the tension between price and capital flow will define the direction for next week.
Market sentiment cools down while buyers pause their activity
Despite the strength in the charts, positive sentiment toward Monero has dropped 72% in just 24 hours. This metric, which measures social media optimism, went from 102 to 29 points, reflecting that market participant euphoria is diminishing quite rapidly today. However, this drop in enthusiasm has not triggered panic selling, but rather a necessary cooling period after a prolonged rally.
On the other hand, exchange data supports this view of a strategic pause by the bulls. The outflow of XMR from platforms dropped significantly, going from nearly 6 million dollars to only 751,000 dollars. Since buying demand has slowed down notably, the market is entering a technical consolidation phase. Therefore, the current support levels will be fundamental to avoid a deeper correction soon.
Will Monero manage to reach the 880 dollar target in the short term?
For the rally to extend toward the 880 dollar mark, it is vital for sentiment to stabilize above 14. If the CMF indicator manages to break the 0.38 barrier, the asset could gain the necessary momentum to rise another 25%. In that optimistic scenario, projections of a four-figure price would stop being speculation to become a real technical possibility for long-term investors.
However, if the 590 dollar support happens to break, the risk of a correction similar to past ones would increase. A drop below that level would weaken the bullish structure that has defined the behavior of privacy cryptocurrencies. Nevertheless, as long as the price stays firm, sellers will remain under control in trading sessions this month. Ultimately, the future of XMR depends on whether capital and conviction return with strength shortly.
