The XMR price has surged this year, moving to its highest level since May 2021, as demand for privacy coins jumped after the Tornado Cash reprieve. Monero has risen for six consecutive weeks and is up by over 226% from its lowest point in 2024.
Why the XMR price has jumped
Monero has soared as investors applauded the court ruling on Tornado Cash, a crypto mixer project. Like Monero, Tornado Cash is a privacy-focused crypto project that ensures transactions cannot be tracked, posing significant challenges for law enforcement.
US authorities arrested its founder and sanctioned it for facilitating crimes worth billions of dollars. Tornado Cash then filed a lawsuit challenging the sanctions, which it won in 2024, forcing the Treasury Department to end the sanctions this year.
Therefore, analysts believe that Monero and other privacy-focused coins will avoid any legal issues. Besides, the Trump administration is proving more friendly to crypto projects this year.
Traders are also optimistic that exchanges like Coinbase, Binance, and Crypto.com will eventually relist it. Many of these firms delisted it to avoid legal issues from US authorities.
While Monero is different from Tornado Cash, they both serve a common goal of ensuring transactions cannot be tracked. It does this by using ring signatures, which group transactions, making them hard to track.
Monero also uses stealth addresses and ring confidential transactions. Stealth addresses are one-time addresses for each transaction, while ring confidential hides the transaction amount. These features have made it popular with cyber criminals, including those using it to launder stolen Bitcoin worth over $300 million.
Monero Price Technical Analysis
XMR price chart | Source: TradingView
The weekly chart indicates that XMR price was in a tight range from 2022 to 2024. It remained between the support and resistance levels at $114.7 and $186.43, suggesting it was in the accumulation phase of the Wyckoff Theory.
The coin then made a bullish breakout and moved into the markup phase, characterized by more demand than supply. It remains above the 50-week and 200-week moving averages, with oscillators like the Relative Strength Index (RSI) and MACD indicators trending upward.
Technicals suggest that Monero’s price will continue to rise, with bulls targeting the $400 mark. After reaching this point, it may enter the distribution and markdown phases, potentially leading to a price pullback.
Read more: Crypto Pro Who Called the CAKE Surge Sees Tornado Cash Hitting $370
