The Monero (XRM) price rose more than 15% in September to hit its highest monthly closing price in 15 months. This was made possible by an impressive rally yesterday, which resulted in an increase of 7.42%.
Fundamental Analysis: A Bounty for Breaking Monero’s Protocol
Yesterday, the IRS announced two winners of its $ 625,000 bounty program, which is designed to monitor transactions on Monero and Layer 2 protocols. The program winners are blockchain analytics firm Chainalysis and Integra FEC.
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The IRS announced its search for a privacy tracking tool in early September. Out of 22 proposals received, the government agency had selected two winners, and the only reason the agency cited in relation to its decision was for “comparative analysis,” an IRS official said.
“IRS-CI is looking for a solution with one or more contractors to provide innovative solutions for tracking and assigning privacy tokens, such as expert tools, data, source code, algorithms and software development services,” said IRS in the official proposal. published a month ago.
Monero is a cryptocurrency that is widely used by criminal organizations due to its poor traceability. The IRS has previously said that due to its “privacy concerns”, XMR will be used for all future ransom calls and transactions by the Sodinokibi ransomware group.
Chainalysis is one of the largest cryptanalysis companies and has already signed similar contracts with other government agencies. Integra FEC, on the other hand, is a less well-known company, despite controlling multi-million dollar contracts with agencies like the Securities and Exchange Commission for “other scientific and technical advisory services”.
The number of companies doing crypto tracing is likely to increase as governments become more interested in this service. A few weeks ago, the US Treasury Department fined a Monero wallet that turned out to be proof of payment.
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Technical analysis: cops face large resistance bloc
Monero’s formidable bull run began in the first week of September after the digital asset traded below the $ 75.00 mark. Since then, XMR buyers have pushed price action above the $ 100 handle to finally print the 15-month high of $ 113.43 today.
Monero Price Action Daily Chart (TradingView)
On the technical side, buyers face strong resistance at these levels. A confluence of the Fibonacci extension lines, which are used to find levels of resistance and support beyond the “1” point, around the $ 115 mark presents huge barriers to buyers in the short term.
A pullback is likely if the support is near $ 106.
Summary
The IRS has named Chainalyis and Integra FEC as the winners of its bounty program for cracking allegedly incomprehensible data protection cryptocurrencies like Monero and Layer 2 protocols. Monero’s bull run, on the other hand, could be nearing its final stage.
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