Monero [XMR] was up 4.2% in 24 hours and 11% in a week. The privacy coin sector has taken a hit in the past week.
The fallout between ZCash [ZEC] and the Electronic Coin Company (EEC) sparked an immediate market reaction. ZEC dropped nearly 20% in a single day before rebounding shortly afterward.
This could have led to greater capital flows into Monero, another leading privacy coin. It was pushing toward its all-time high at $517, aided by the ZEC fallout and the relative strength in the altcoin sector in January.
Monero to challenge a local resistance once more
On the 3-day timeframe, Monero had been opposed by the $420 resistance since November. This level was a swing high from May 2025. Recent price action saw this area flipped to support, presenting swing traders with a buying opportunity.
The impulse move from $165 to $420 earlier in the year was used to plot a set of Fibonacci extension levels. It showed that $480 and $577 were the next extension targets.
The $480 level has temporarily rejected XMR bulls, but will likely be challenged again.
The technical indicators on the 3-day timeframe remained bullish. The RSI showed strong upward momentum, and the OBV maintained its uptrend to indicate sustained buying pressure.
The possibility of a bearish reversal
While possible, it is the less likely outcome in the short-term, meaning within the next month. Bitcoin [BTC] has a chance to go towards $96k and possibly beyond $100k as part of a relief rally in the coming weeks.
Bitcoin Dominance has been falling recently to show increased altcoin gains compared to Bitcoin. Additionally, the higher timeframe trend of Monero is bullish, and it has retaken its spot as the leading privacy coin by market capitalization.
Why traders should stay bullish!
The 4-hour chart showed that the $460-$470 area was a local supply zone. Given the bullish momentum and swing structure on this timeframe, it seems only a matter of time before this resistance is flipped to support.
Once it is, traders can look to go long, targeting the $517 and $577 levels to the north to take profits at.
Final Thoughts
- The Monero price gains have been steady since August, and the uptrend is expected to continue.
- The privacy token could set new all-time highs soon, even though the overall market sentiment remained fearful.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
