The privacy-focused cryptocurrency Monero (XMR) has soared about 20% over the past week, rising from $352 on November 3 to a peak of $433.
The rally, which has kept XMR above $420, follows Zcash’s explosive rise earlier this month and signals that traders’ attention may shift to privacy-oriented digital assets. The move coincided with a technological breakout with network upgrades and renewed interest in censorship-resistant transactions.
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Zcash profit rotation causes short squeeze
After Zcash soared 200% in early November, traders began diverting their profits to other privacy coins, with Monero emerging as the main beneficiary. According to Santiment data, “privacy coins” have been trending social topics since November 6, confirming the growing interest of traders in the sector.
Open interest in Bybit and Binance’s XMR futures reached record levels, triggering a series of forced short liquidations. CoinGlass reported that around $12 million in short positions were liquidated over a seven-day period, forcing bearish traders out of their positions and accelerating the price’s upward momentum.
The capital turnover pattern reflects a broader trend of investors seeking the “next privacy coin” after securing first-mover gains. This dynamic has historically characterized altcoin rallies, with sequential shifts in momentum across related assets within the sector.
First breakout in seven years coincides with network upgrade
Chart analysis reveals that XMR/USD has completed a massive “cup and handle” pattern dating back to 2018, breaking above the psychological $400 level.
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“Monero targets at least $1,000 based on this multi-year setup,” a popular analyst wrote in a technical outlook predicting a minimum target of $1,000.
Beyond technical factors, Monero developers are preparing to implement Full-Chain Membership Proof (FCMP++) in 2025. This is a protocol upgrade that is expected to significantly enhance transaction speed and privacy. The expected improvement attracts long-term investors who are positioning ahead of implementation, adding fundamental support to the technical breakout.
Privacy demand re-emerges despite regulatory pressure
Many exchanges have delisted Monero due to regulatory pressure, but the coin’s uncompromising anonymity profile is gaining renewed recognition. Cryptocurrency influencers described Monero as “the best cryptocurrency of all time” and pointed out its underestimation.
Another prominent trader, TheCryptoDog, highlighted that low liquidity amplifies price volatility, explaining that moderate buying pressure can generate significant upside. The trading volume of XMR decentralized exchanges has increased significantly, suggesting an inherent demand that does not rely on centralized platforms.
Last week’s rally appears to have been driven by a convergence of technical, fundamental, and sentiment factors rather than pure speculation. The next resistance zone is between $500 and $520. A decisive break above this range would put it within range of its 2021 all-time high of $517 and could signal a broader resurgence for privacy-focused cryptocurrencies after years of regulatory challenges and exchange delistings.
