Amidst a tough consolidation phase in the crypto market, Monero (XMR) displays remarkable resilience, ranking among the top 100's best performers. Could this privacy coin replicate the recent explosive movement seen in Zcash? Technical analysis uncovers intriguing signals for the upcoming weeks.
Monero currently stands out as one of the few altcoins maintaining bullish momentum amid the broader cryptocurrency market correction. While Bitcoin and Ethereum struggle to defend major support levels, XMR is delivering impressive relative performance that’s catching the attention of both institutional and retail traders.
This resilience can be attributed to several fundamental factors. Demand for privacy solutions remains strong in an increasingly restrictive regulatory environment. Monero’s on-chain exchange volumes have increased significantly in recent weeks, demonstrating renewed interest in private transactions. Unlike Bitcoin, where every movement remains traceable on the blockchain, Monero natively integrates privacy protocols such as ring signatures and stealth addresses.
XMR’s position among the top 100 outperformers is not coincidental. Investors are seeking decorrelated assets capable of generating alpha during consolidation phases. Monero checks this box with growing adoption on dark markets and a particularly active developer community. The XMR/BTC ratio has shown a clear upward trend since early March, suggesting gradual accumulation. According to Giallo, XMR could soon explode toward $500.
Zcash recently made a parabolic movement that surprised many market observers. The ZEC price surged by more than 80% in just a few weeks, breaking out of a long lateral compression phase. This explosion occurred after a period of discreet accumulation and a series of major technical protocol updates.
The similarities between Monero and Zcash are striking in several aspects. Both projects dominate the privacy coin segment with different but complementary technological approaches. Zcash uses zk-SNARKs to guarantee optional transaction privacy, while Monero enforces privacy by default across its entire network. This philosophical difference attracts distinct user profiles, but both are equally engaged.
From a technical perspective, Monero presents a similar chart pattern to what was observed with Zcash before its rally. The price has been evolving in a consolidation range for several months, with increasingly higher lows forming a characteristic higher lows structure. The daily Order Block indicates progressive accumulation by smart money.
The fact that Monero has risen above its POC at $320 demonstrates the current bullish momentum on the token.
However, several differences deserve attention. Zcash benefits from more developed institutional partnerships and more aggressive marketing. Monero favors a decentralized community approach, which sometimes limits its media visibility but strengthens its credibility among decentralization purists. It could therefore continue to consolidate above $230-160 for several weeks or months if the market doesn’t resume its upward trend.
Monero’s on-chain analysis reveals encouraging metrics for long-term holders. The number of daily active addresses shows consistent growth over the past six months, indicating sustained organic adoption. Mining data also shows an increase in hashrate, strengthening network security and demonstrating miners’ confidence in the project’s economic viability.
Market sentiment around privacy coins is experiencing a notable resurgence of interest. Growing concerns about financial surveillance and CBDCs are pushing some investors toward alternatives offering true fungibility. Monero represents the gold standard in transactional privacy, a feature that even Bitcoin cannot guarantee without layer 2 solutions.
The spot market structure shows deep liquidity on major exchanges. Order books display significant buy walls at key support levels, suggesting discreet institutional accumulation.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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