XMR’s decline on the social front has more to show than just bearish signals

XMR’s decline on the social front has more to show than just bearish signals

  • Monero saw a decline in social volume and dominance, leading to lower transaction volume
  • The decline however did not prevent XMR from showing signs of breaking out of the bearish zone.

Focused on confidentiality cryptocurrency Monero [XMR] recently faced investor concern as its social metrics declined. Based on Santiment’s revelations, not only has social volume declined, but his social dominance has followed.

Lily Monero’s [XMR] price prediction 2023-2024

On-chain data from Santiment showed that XMR’s social dominance initially reached 3.576% on November 19. However, it didn’t take long for dominance drop considerably at 0.464%. This state implied that XMR was not at the top of asset discussions in the crypto ecosystem.

The social volume of the token followed a similar path and reached 49 at press time. This meant that investors were not turning to crypto to buy positions.

Social networks have their role to play…

The aforementioned drops spread to other aspects of Monero, with volume unable to escape the impact. As of this writing, XRM’s volume is down 13.74% to $49.07 million, according to CoinMarketCap. Thus, XMR transactions had decreased over the past day, resulting in minimal transactions on the network.

Social dominance and volume of Monero

Source: Santiment

However, there was one positive takeaway from Monero’s on-chain status, as development activity saw increases since November 16. This meant that the upgrades were active on the network and XMR was not delayed by the channel upgrade.

Interestingly, declines weren’t just the order of the day, and development activity wasn’t the only one seeing an increase. According to Sanitment, the weighted feeling also played its part.

Between November 19 and 20, the weighted sentiment moved out of the -0.057 region to settle at 7.609. At this point, this meant that XMR still retained its relevance in the crypto community.

Development and Sentiment of Monero

Source: Santiment

What is the price of XMR?

XMR was trading at $132.65 at press time, down 0.53% in the past 24 hours. Nonetheless, it looked like the coin was heading towards a sustainable buying momentum. Indeed, the Relative Strength Index (RSI), at 43.39, signaled upward movement from its former global region.

Additionally, the Bollinger Bands (BB) showed signs of XMR breaking out of the low volatility zone with a possible upside. Where the BB managed to head into extreme volatility, XMR was likely to maintain buying pressure. It could also lead to a price increase. However, given the current state of the market, these indicators may not be sufficient to establish price projections.

Monero [XMR] price action

Source: Trading View

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