Monero [XMR] Surges Amid Privacy Token Selloffs: Can It Weather Bitcoin's Pullback?

Despite significant retracements in several prominent tokens this week, their long-term outlook remains positive.
Monero has shown continued bullish behavior, with an upcoming challenge to surpass key resistance levels of $418 and $470, while $518 remains critical for long-term growth.
The future of the privacy token narrative may be evolving rather than disappearing.

Key Takeaways

Despite significant retracements in several prominent tokens this week, their long-term outlook remains positive.
Monero has shown continued bullish behavior, with an upcoming challenge to surpass key resistance levels of $418 and $470, while $518 remains critical for long-term growth.
The future of the privacy token narrative may be evolving rather than disappearing.

Recent trends show that while some well-known tokens like ZKSync [ZK] and Dash [DASH] have dipped by 34.6% and 38.25%, respectively, the landscape for Monero [XMR] remains distinct. Initially, Monero was one of the leading privacy coins but lost its place on many major centralized exchanges due to regulation-driven concerns regarding its untraceable transactions. Despite this, Monero has gained 13.1% over the past week, indicating a resilient demand for this privacy-focused cryptocurrency amidst broader market fluctuations.

Monero [XMR] rises 5.51% in 24 hours, showing a 13% gain over the week

Will Monero's Gains Sustain?

The losses faced by various large privacy-coined assets this past week appear more as a temporary retreat rather than an end to their upward trends. Analyzing the daily price actions of these coins suggests that if ZCash [ZEC] continues its upward movement and Bitcoin [BTC] rallies back towards $108k, buyers may re-enter the market bolstered by enhanced market optimism.

XMR 1-day Chart
Source: XMR/USDT on TradingView

This trend would likely favor Monero. Since breaking through the $300 barrier in September, Monero's price has been largely bullish. The moving averages indicate consistent support, underpinning Monero’s growing bullish momentum. The Relative Strength Index (RSI) has also remained above neutral levels for nearly three months, aligning with the bullish movement, as seen by the Upward Volume Balance (OBV), which confirms increased buying pressure supporting the rally. Nevertheless, Monero faced challenges, unable to close above $418 despite a brief spike to $470. This $418 area also represents the high reached in May, reinforcing its status as a significant resistance point.

What Are the Key Levels Going Forward?

Fibonacci analysis reveals that the 50% retracement level rests at $367.5, maintaining its status as support and enabling an upward push towards the $396 mark. To target the next crucial level of $518, bulls must achieve a daily close above $418. This $518 area holds significance as it aligns with both a Fibonacci extension and the previous cycle peak in 2021. Conversely, a daily close below $367 would indicate waning momentum and potentially lead to a more extensive price correction.

Disclaimer: The information above does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.