The price of Monero (XMR), the privacy-focused cryptocurrency, has dropped more than 15% in the week and nearly 25% in the past month, becoming one of the worst-performing assets in the market. This price decline was sparked by news of a 51% cyber attack by the Qubic mining group.
The threat from the 51% attack
The mining group #Qubic claims to have controlled over 51% of the Monero network's hashrate. This could allow them to manipulate the blockchain, censor transactions, or carry out double-spending attacks. Although the founder of Qubic denies any malicious intent, this attack still poses serious instability for the network. Evidence is shown in the consensus state dashboard of #Monero indicating that 60 blocks have been orphaned in the last 720 blocks.
Negative signals from the technical chart
The technical indicators for XMR all show a strong bearish trend. The RSI is at a low of 25, indicating that the asset is being oversold. Although this could be a sign of a recovery, in the context of fundamental instability, the selling pressure may persist. The ADX at 29 also confirms that the current downtrend is strong and likely to continue. The price $XMR has broken through several important support levels and is at risk of dropping below $250.
Although the moving averages indicate that the long-term trend may be positive, the stability of the network is a determining factor. If the 51% attack is confirmed, XMR may lose its core value. Conversely, if the network proves its resilience, a recovery rally may occur. #anhbacong
