The price of Monero this year is in a relentless bull trend and is gaining momentum, as bulls target the historical high.
Monero (XMR), the largest privacy-focused coin, has risen for seven consecutive weeks, reaching a peak of $402. Last week was the best in this cycle, as it jumped over 20%.
The price of XMR has surged nearly 300% from its lowest point in 2024, bringing its market capitalization to $7.4 billion. This result is notable because the coin has been delisted from most top-tier exchanges such as Coinbase and Binance. Most of its trading occurs on KuCoin, HTX, and MEXC.
Observers link the spike in Monero's price to increased demand for privacy-focused coins, as Tornado Cash, a decentralized, non-custodial privacy protocol built on the Ethereum blockchain, continues to face legal issues. The price of ZCash (ZEC) has risen to $50, the highest level since January, and is 95% above its lowest level this year.
Monero also surged after a suspicious transfer of more than 3,520 bitcoins (BTC) worth $330 million into XMR. ZachXBT noted that the transfer was likely related to a hack, although no further details have emerged.
Some analysts believe that demand for Monero may increase as the number of cryptocurrency hacks rises. Just last week, the Cetus Protocol, a decentralized exchange on Sui, was drained by hackers for about $223 million.
Hackers prefer Monero over stablecoins like USDT and USDC because their transactions are difficult to trace. Monero provides this privacy through ring signatures, stealth addresses, and ring confidential transactions.
In ring signatures, it groups several transactions, making it hard to determine the true sender. It also uses stealth addresses, generating a unique one-time address for each transaction. And in ring confidentiality, it obscures the transaction amount.
The weekly chart shows that the price of XMR has sharply risen this year after three years of being in a tight range between $127 and $187. Such price action is a sign that it has entered a Wyckoff growth phase, which is typically characterized by higher demand than supply.
Monero remains above the 50-week and 100-week exponential moving averages. The relative strength index indicates that it has become significantly overbought.
Thus, the bullish trend is likely to continue, as bulls target the historical high of $517, which is about 27% above the current level. After reaching this resistance, it is likely to enter a Wyckoff distribution phase and pull back.
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