Monero Price Analysis: XMR/USD Smashed Through Critical Support, as Mining Malware Gains Almost 5% of Total Supply

  • XMR/USD price action via the daily chart view has breached a critical ascending trend line of support.
  • A study suggests that Monero is still the number 1 popular cryptocurrency among cyber criminals.

XMR/USD Price Review

XMR/USD daily chart. Bears break vital ascending trend line.

The XMR/USD price had initially staged a strong rebound on 15th December 2018. It was very well supported by an ascending trend line, which provided the needed bounce each time the price met it.  Over the course of its elevation, XMR/USD went on to gain as much as 55%. This support had been running right up to the session of 10th January.

A fresh wave of selling pressure hit the entire cryptocurrency market on Thursday 10th January. As a result, the bears managed to smash through the above-detailed ascending trend line. This saw XMR/USD dropping big double-digits and over 18% at the worse point of the day. Further downside was halted thanks to a large daily support level, seen at $44.25.

Since hitting the above-mentioned daily support, at the time of writing, price action has stabilized. Given the breakout of the long-running trend line, eyes will now be on a retest of this. This means XMR/USD could run back up to $53 to come back into proximity with the prior acting support. The bulls will likely have a new challenge in breaking it down.

Monero is Cyber Criminals’ Favorite

A recent study has suggested that Monero remains the most popular cryptocurrency among cyber criminals.  They have been deploying mining malware, which has been able to accumulate a large amount of XMR.

Sergio Pastrana and Guillermo Suarez-Tangil, two researchers, published their findings last week. They are from Universidad Carlos III de Madrid and King’s College London, having estimated that hackers have be able to mine at least 4.32% of the total Monero in circulation.

In terms of the data, it goes back to 2007, covering crypto mining malware and analyzing over 4.4 million samples of malware during the 12-year period. Furthermore, the research picked up on over one million miners of a malicious nature.

Both researchers detailed that around 2,218 malware campaigns had taken place, which accumulated to roughly 720,000 XMR, worth around $57 million. Elsewhere, there is another campaign that is still in process, which has grabbed as much as 163,000 XMR to date.

In terms of the tactics that were adopted to distribute the malware, this has been reported to vary. The researchers did not that a “common yet effective approach is to use legitimate infrastructure such as Dropbox or GitHub to host the droppers, and stock mining tools such as claymore and xmrig to do the actual mining.”

Lastly, it is worth noting that back in December McAfee published a report which detailed occurrences of crypto-mining malware had jumped well over 4,000% last year.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

 

Author:
Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.