Monero Surges 20% as Privacy Coin Rotation Intensifies

Privacy-focused cryptocurrency Monero (XMR) has surged approximately 20% over the past week, climbing from $352 on November 3 to a temporary high of $433.

The rally, which has sustained XMR above $420, follows Zcash’s explosive gains earlier this month and signals a potential shift in trader attention toward privacy-oriented digital assets. The move comes as technical breakouts align with network upgrades and renewed interest in censorship-resistant transactions.

Profit Rotation from Zcash Triggers Short Squeeze

Following Zcash’s 200% surge in early November, traders began rotating profits into other privacy coins, with Monero emerging as the primary beneficiary. Santiment data shows “privacy coins” became a trending social topic starting November 6, confirming increased trader interest in the sector.

Open interest in XMR futures on Bybit and Binance reached record levels, triggering a cascade of forced short liquidations. CoinGlass reports that approximately $12 million in short positions were liquidated over the seven days, accelerating the upward price momentum as bearish traders were squeezed out of their positions.

The capital rotation pattern reflects a broader trend in which investors seek the “next privacy coin” after securing gains from initial movers. This dynamic has historically characterized altcoin rallies, where momentum shifts sequentially across related assets within a sector.

Seven-Year Breakout Coincides with Network Upgrade

Chart analysis reveals XMR/USD has completed a massive “cup and handle” pattern dating back to 2018, breaking through the psychological $400 level.

“Monero targeting at least $1,000 based on this multi-year setup,” a popular analyst posted a technical outlook projecting a minimum target of $1,000.

Beyond technical factors, Monero developers are preparing to implement Full-Chain Membership Proofs (FCMP++) in 2025, a protocol upgrade expected to enhance transaction speed and privacy significantly. The anticipated improvement has attracted long-term investors who are positioning ahead of implementation, adding fundamental support to the technical breakout.

Privacy Demand Re-Emerges Despite Regulatory Pressure

While numerous exchanges have delisted Monero under regulatory pressure, the coin’s uncompromising anonymity features are experiencing renewed appreciation. Crypto influencer described Monero as “the greatest cryptocurrency ever” and noted its undervaluation.

Another prominent trader, TheCryptoDog, highlighted that low liquidity amplifies price movements, explaining that modest buying pressure can generate substantial rallies. Decentralized exchange trading volume for XMR has increased markedly, suggesting organic demand independent of centralized platforms.

The past week’s rally appears driven by converging technical, fundamental, and sentiment factors rather than pure speculation. The next resistance zone sits between $500 and $520. A decisive break above this range would bring the 2021 all-time high of $517 within reach and potentially signal a broader revival for privacy-focused cryptocurrencies after years of regulatory challenges and exchange delistings.