Monero (XMR) Explodes Over 24% Towards $300, Fueled by Speculation and Technical Breakout
Leading privacy-focused crypto Monero (XMR) has seen a sharp price increase, rising over 24% in the past 24 hours to trade beyond the $270
Quick overview
- Monero (XMR) has surged over 24% in the past 24 hours, trading beyond $280, driven by speculation around illicit fund movements and a technical breakout.
- A significant conversion of approximately 3,520 BTC into Monero has triggered a price spike, with trading volumes increasing from $50 million to over $220 million.
- Upcoming upgrades aimed at making Monero more compliance-friendly are fueling positive sentiment, while the entire privacy coin sector is experiencing a resurgence.
- Despite the notable gains, analysts caution about potential overbought conditions and the possibility of a price pullback.
Leading privacy-focused crypto Monero (XMR) has seen a sharp price increase, rising over 24% in the past 24 hours to trade beyond the $270 level. Though analysts warn about overbought conditions, this notable rally, which sent XMR/USD beyond $320 at its peak—appears motivated by speculation about possible illicit fund moves and a critical technical breakout.
Massive Bitcoin-to-Monero Conversion Triggers Price Spike
According to on-chain investigator ZachXBT, Sunday’s transaction count for roughly 3,520 BTC seems to point to a theft event. The funds were later laundered through more than six instant exchanges and converted to Monero, producing an instantaneous 50% surge in XMR’s price due to the huge swaps and minimal liquidity on these platforms.
“There seems to be no clear catalyst behind $XMR’s recent rally,” Presto’s research analyst Min Junning informed CoinDesk. “Network activity stays constant with usual levels, suggesting the move may be more speculative in nature.”
But the unexpected demand for Monero, which is known for its privacy-centric characteristics based on the CryptoNote technology guaranteeing unlinkable and untraceable transactions, has definitely changed market dynamics.
XMR Trading Volumes Surge as Liquidations Mount
From an average of $50 million on a seven-day rolling basis to over $220 million in the past 24 hours, XMR trading volumes have soared. Coinglass data shows that nearly $1 million in short liquidations across key exchanges coincide with this substantial rise in volume, hence driving the upward price momentum.
Rising from $20.13 million on Friday to $30.38 million on Monday, open interest in Monero futures reaches its highest level since December 20. This rising open interest reflects fresh money joining the market, so bolstering the optimistic view.
Upcoming Upgrades Fuel Relisting Hopes
Rising expectations about Monero’s suggested EP159 and EP160 improvements add to the positive attitude. These recommendations seek to make Monero more “compliance-friendly” by letting users create proof of transaction validity without revealing private data that should be kept under confidentiality.
Privacy Coin Sector Gains Momentum
Monero’s advance has lifted the whole privacy coin sector, with Zcash (ZEC) increasing over 19%, MimbleWimbleCoin (MWC) gaining over 1.3%, and Dash (DASH) and Decred (DCR) climbing 6.8% and 2.7% respectively. The simultaneous rise indicates a wider return of interest in privacy coins in line with growing government scrutiny of popular cryptocurrencies.
XMR/USD Technical Breakout: 8-Year Ascending Triangle Formation
Technically, Monero has rallied over 19% by breaking above a noteworthy ascending triangle pattern on the daily chart. More remarkably, this breakout represents a long period of consolidation and takes place inside a massive ascending triangle pattern that has been developing for about 8 years.
With analysts pointing a possible objective of $345.23, the technical pattern breakout benefits the bulls. Though the Relative Strength Index (RSI) on the daily chart now shows at 83, well above the overbought threshold of 70, traders are advised to consider taking profits around the $300 level as cooling pressures may develop.
Caution Signs on the Horizon
Technical indicators point to a possible reversal even if the overall gains are noteworthy. The XMR/USD weekly chart shows the price moving inside an ascending parallel channel since mid-2024; the latest breakout crosses the top edge of the channel close to $330—a historically strong resistance zone.
Furthermore, the high RSI readings during the weekly period point to perhaps overstretching buying momentum. XMR retesting the $208–$267 area might see a possible pullback scenario whereby $242.30 serves as a median target based on historical importance as a resistance level.
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