Monero Experiences 20% Surge Amid Increased Interest in Privacy Coins

In recent days, Monero (XMR), a cryptocurrency emphasizing privacy, has surged around 20%, rising from $352 on November 3 to a peak of $433.

Key Takeaways

Monero (XMR) has seen a 20% price increase recently, fueled by a shift in trader focus towards privacy cryptocurrencies.
Profit rotation from Zcash (ZEC) has led to increased trading activity in Monero, causing significant short liquidations.
A major technical breakout in XMR is supported by impending network upgrades aimed at improving transaction privacy and speed.
Despite some exchanges delisting Monero, the demand for its strong anonymity features is on the rise, and significant price movements are expected as trader interest grows.

This impressive rally, which has kept XMR above the $420 mark, follows a substantial increase in Zcash’s price earlier this month. This trend indicates that traders are starting to shift their focus toward privacy-centric digital currencies. The movement coincides with significant technical breakouts and a renewed enthusiasm for transactions that resist censorship.

Profit Rotation from Zcash Sparks Short Squeeze

After Zcash (ZEC) saw an enormous 200% increase in early November, traders started reallocating their profits into other privacy-focused coins, with Monero being the standout beneficiary. According to Santiment, the term “privacy coins” started trending on social media around November 6, signifying increasing interest among traders in this niche.

Zcash (ZEC) Price Chart - 90 Days

Data shows that open interest in XMR futures on platforms like Bybit and Binance has risen to unprecedented levels, triggering waves of forced liquidations of short positions. CoinGlass reports that roughly $12 million worth of short positions were liquidated in the past week, amplifying the upward price momentum as bearish traders exited their positions.

This pattern of capital reallocation highlights a wider trend where investors search for the “next privacy coin” after taking profits from early movers. This behavior has been traditionally observed in altcoin rallies, where price momentum shifts sequentially among related assets.

Major Breakout Aligns with Network Upgrade

Chart analyses indicate that XMR/USD has formed a significant “cup and handle” pattern dating back to 2018, successfully breaching the important psychological barrier of $400.

A well-known analyst has shared a technical forecast suggesting that Monero could aim for at least $1,000 based on this multi-year setup.

Monero Price Chart

In addition to these technical factors, Monero’s developers are set to introduce Full-Chain Membership Proofs (FCMP++) in 2025, a protocol upgrade that promises to greatly enhance transaction speeds and privacy. This anticipated upgrade has captured the interest of long-term investors seeking to position themselves ahead of implementation, providing fundamental support to the price breakout.

Renewed Interest in Privacy Despite Regulatory Challenges

Although several exchanges have delisted Monero amid regulatory scrutiny, the coin’s robust anonymity features are gaining renewed recognition. A notable crypto influencer has even declared Monero as “the greatest cryptocurrency ever,” commenting on its undervaluation.

Crypto Influencer Tweet

Another respected trader, TheCryptoDog, mentioned that low liquidity can amplify price movements, suggesting that even slight buying pressure can lead to significant price rallies. There has been a pronounced uptick in decentralized exchange trading volume for XMR, indicating a healthy demand independent of centralized platforms.

This recent price surge appears to be fueled by a combination of technical, fundamental, and sentiment factors, rather than mere speculation. The next resistance levels are identified between $500 and $520. A decisive breakthrough beyond this area could bring Monero closer to its all-time high of $517 from 2021, potentially signaling a wider resurgence for privacy-focused cryptocurrencies that have faced regulatory challenges and exchange delistings over the years.

Monero (XMR) Price Chart - Past 7 Days