The crypto market has been choppy lately. Some coins grind sideways. Others fake out traders daily.
Still, every cycle has moments where a forgotten narrative suddenly wakes up.
That is exactly what we are seeing with Monero.
I have followed and bag-held Monero since 2016. Back then, it was not a hype trade. It was a thesis.
The real privacy coin. The one with an actual underground economy behind it.
Bitcoin started that way. Then it became traceable. Monero quietly took over that role.
I held XMR for almost nine years.
And yes, I finally sold this year when I was cleaning out my wallets of alts… right before it went vertical.
Classic timing. Still profitable, though. So no tears here.
Let’s break down what is driving Monero’s price action, why it suddenly woke up, and what comes next.
Monero Breaks Out While the Market Hesitates
While much of the broader crypto market struggled to pick a clear direction, Monero did the opposite.
XMR surged aggressively and pushed into new all-time-high territory.
At the time of our original call, Monero was trading around $350.
That move alone delivered more than a 120% rally.
Privacy coins were already showing relative strength late last year.
Zcash got attention first. Monero followed with force.
This was not a slow grind.
It was a violent repricing.
Thin liquidity, offshore trading venues, and limited spot access amplified every move.
When demand showed up, price reacted fast.
A Quick Look Back at Our Privacy Coin Call
In early November, we highlighted the ZEC run and pointed out something important.
Privacy coins were lagging the market.
That gap rarely lasts long.
Capital rotated into the privacy sector as traders searched for uncorrelated narratives.
Monero did more than catch up.
It overshot expectations and printed new highs close to the $800 level.
If you followed that call and traded it cleanly, that was a textbook narrative trade.
GG to everyone who caught it.
I missed my own bag, but that is part of the game.
Why Demand for Monero Is Surging Again
The core driver is simple.
Privacy is becoming scarce.
Across major regions, regulators continue tightening AML and KYC rules.
Cash usage declines.
Blockchain surveillance expands.
That environment pushes users toward assets with privacy by default.
Monero does not offer optional privacy.
Every transaction is private. No settings. No opt-ins.
Ring signatures, stealth addresses, and confidential transactions make Monero fundamentally different from most blockchains.
That difference matters more when oversight increases.
Ironically, bans and restrictions have acted as fuel, not friction.
Read my thoughts on why the current crypto rally feels different.
Regulation Pressure Is Fueling the Trade
Recent regulatory headlines played directly into the Monero narrative.
Dubai barred exchanges from listing privacy coins.
The European Union outlined future restrictions on anonymous crypto accounts.
The US continues expanding reporting requirements.
Instead of killing demand, these moves triggered urgency.
Traders front-ran access restrictions.
Capital flowed into assets before liquidity tightened further.
This behavior is not new.
Markets move before enforcement, not after.
Capital Rotation Out of Zcash Helped XMR
Monero also benefited from instability elsewhere.
Zcash faced internal governance disputes and developer exits.
Confidence weakened.
Liquidity followed conviction out of the ecosystem.
Monero gained from that rotation.
Traders view XMR as more decentralized and less dependent on a single foundation.
In moments of uncertainty, capital tends to move toward perceived durability.
That shift added momentum to an already strong trend.
Technical Structure Explains the Speed of the Move
From a chart perspective, Monero cleared multi-year resistance.
The $600–$650 zone capped price for years.
Once broken, it acted as fuel.
Momentum traders stepped in.
Systematic funds followed.
Short positions got squeezed.
Liquidity increased just enough to accelerate price discovery, not smooth it.
That combination explains why Monero’s rally felt aggressive and relentless.
Derivatives Reopened Price Discovery for Monero
Spot access to Monero has been shrinking due to exchange delistings.
That hurt price discovery.
Then derivatives stepped in.
Perpetual swaps reopened the door for speculation, hedging, and leverage.
After launch, XMR saw immediate volume expansion and renewed interest.
This pattern is familiar in crypto.
When spot access disappears, derivatives often take over the role of discovery.
Markets adapt faster than regulation.
Is Monero Turning Into a Digital Safe Haven?
An interesting correlation appeared during this rally.
Monero’s price action aligned more closely with gold and silver than with Bitcoin.
Both metals printed strong moves at the same time.
That does not happen by accident.
Scarcity, censorship resistance, and privacy are overlapping narratives.
As confidence in traditional systems fluctuates, those attributes matter more.
Monero increasingly trades like a hedge, not just a speculative altcoin.
Liquidity Risks and Short-Term Volatility
Despite the bullish structure, risks remain.
Liquidity is fragmented.
Trading concentrates on fewer venues.
That increases the chance of sharp swings.
Profit-taking is already visible after deep overbought conditions.
Short-term pullbacks are normal after a move of this magnitude.
The key zone to watch sits around the prior breakout region.
Holding above it keeps the broader trend intact.
Below that, volatility increases.
Network Upgrades Add Long-Term Weight
Beyond price action, Monero continues to evolve.
The upcoming FCMP++ upgrade aims to strengthen privacy further and improve quantum resistance.
Previous upgrades delivered real improvements, not marketing promises.
Historically, meaningful network upgrades have coincided with renewed interest and repricing.
This one fits that pattern.
Few assets compete with Monero at this depth of privacy.
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My Personal Take After Holding Monero Since 2016
Selling Monero after nine years was not easy.
The thesis changed.
Exchange delistings increased.
Liquidity thinned.
I decided to move on.
Then Monero exploded.
That happens more often than people admit.
Timing is brutal.
Still, the trade was profitable, and discipline matters more than nostalgia.
What matters now is understanding why Monero moved.
And whether that narrative stays alive.
It’s back on my watchlist now. The current 10% pullback might be an opportunity to buy back in. Potentially, I’ll wait for the low 500s, not because of greed, but because an explosive run-up usually retests break-out levels. So I’ll stay patient and observant.
Final Words on Monero Price Action
Monero’s rally is not random.
It reflects repricing of privacy in a world moving the opposite direction.
Regulation pressure, liquidity constraints, and narrative rotation all aligned.
Short-term volatility is inevitable.
Long-term demand drivers remain intact.
Whether Monero pushes higher or consolidates, one thing is clear.
Privacy is back on the menu.
And markets are paying attention again.
If you enjoyed this blog, check out our thoughts on how the InfoFi game is changing.
As always, don’t forget to claim your bonus below on Bybit. See you next time!
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