Is it safe to buy Firo after crossing an important resistance level?
Firo price rose to the highest level since July 16 of this year as demand for the coin rose. It jumped by more than 28%, bringing its total market cap to over $43 million and its diluted cap to more than $80 million. Other privacy-focused coins also did well.
What is Firo and why did it rise?
Cryptocurrencies like BTC and LTC were created to facilitate transactions in an anonymous way. However, since Bitcoin works on a public ledger, its role as a privacy coin has been diminished since authorities can easily track transactions.
Firo is one of the few privacy tokens in existence today. Others are Monero, Dash, and Decred. These coins work by ensuring that no one can track transactions. They achieve that by automatically changing a user’s address as the transaction is being implemented.
Investors have been focused on the privacy sector in the past few months as authorities got more concerned about the industry. Their most recent action was to sanction Tornado Cash, a cryptocurrency mixer that promoted privacy when using popular coins like ETH and BTC.
Firo is a privacy cryptocurrency that works using the proprietary technology known as Lelantum. This technology allows users to burn coins or destroy them so that they stop existing. After doing that, users can then redeem them at a later date for coins that do not have a previous history.
Redeeming involves giving them zero-knowledge proof that you previously burned coins without showing those that you burnt.
Firo price has risen in the past few days even after a major development in the privacy token industry. Last week, Huobi, one of the biggest companies in the industry, said that it would delist the coin together with other privacy tokens. The company said that this delisting was done in order to comply with regulations.
It is also rising as demand for proof-of-work cryptocurrencies following the success of Ethereum merge. Indeed, its hash rat has risen to the highest level in a few days.
Firo price prediction
The daily chart shows that Firo price has been in a strong bullish trend in the past few days. It has managed to move from the year-to-date low of $1.1715 to about $4. Along the way, the coin jumped above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved close to the overbought level. It also crossed the important resistance point at $3.42.
Therefore, Firo seems to have momentum, meaning that the coin will likely continue rising as buyers target the next key resistance level at $5.
Where to buy Firo now
Binance is one of the largest cryptocurrency exchanges in the world. It is better suited to more experienced investors and it offers a large number of cryptocurrencies to choose from, at over 600.
Binance is also known for having low trading fees and a multiple of trading options that its users can benefit from, such as; peer-to-peer trading, margin trading and spot trading.
WazirX is India’s largest crypto exchange. Started in 2018, WazirX has grown to be the most trusted exchange in the Indian crypto market. It is a part of the binance group, serving users in 180 countries.