Monero price has rallied for five consecutive weeks and is trading at levels last seen in April 2022.
Monero (XMR), the largest privacy-focused cryptocurrency, was seen trading at $220.70 on Thursday Jan. 23, up by 113% from its lowest level in 2024.
The rebound picked up momentum after a US court ruled in favor of Tornado Cash (TORN), a popular crypto mixer that was slapped with sanctions. The US government argued that the network facilitated money laundering.
The ruling was a positive catalyst for other privacy-focused coins like Monero, Dash, and ZCash, which have faced scrutiny in the past few years. Popular exchanges like Kraken, Binance, and Coinbase delisted most of them to comply with US laws.
Monero’s privacy features mean transactions cannot be tracked. It does that by creating ring signatures, which combines a sender’s transaction with others to hide their true identity. Monero also uses stealth addresses to facilitate privacy.
Therefore, there is a likelihood that some mainstream exchanges will relist Monero after Tornado Cash’s victory and the recent Donald Trump’s inauguration. Trump has pledged to be a more crypto-friendly president and has already appointed friendly regulators like Mark Uyeda and Paul Atkins.
A relisting would likely push Monero’s price and hash rate higher. Data by CoinWarz shows that the coin’s hash rate has dropped to 3.55 GH/s, from the year-to-date high’s of 4.10 GH/s.
Monero price analysis
The weekly chart shows that the XMR token has remained inside the key support and resistance levels at $117 and $181 since 2022 as the war on privacy coins intensified.
This consolidation was similar to that of Ripple (XRP), which also remained in a tight range for over two years and then rebounded in November last year. It is a sign that the coin has been in an accumulation phase, often followed by the markup. In Wyckoff Method, the markup phase is characterized by higher demand than supply.
Monero has now moved slightly above the resistance at $181 and the 50-day moving average. The Average Directional Index has moved to 22, a sign that the trend is strong. Therefore, there is a likelihood that Monero will go parabolic, and retest the psychological point at $300. It will then rally by 140% to the all-time high of $515.
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