Key Takeaways
Is the privacy sector losing strength?
Some of the popular tokens in the sector have made deep retracements over the past week, but their long-term structure remained bullish for now.
What are the next targets for Monero?
Monero bulls have been steady in recent weeks, and another attempt to climb past $418 and $470 will likely arrive soon, with $518 being the key long-term resistance overhead.
Was the privacy narrative fading or resetting?
Over the past week, popular tokens such as ZKSync [ZK] and Dash [DASH] have shed 34.6% and 38.25%, respectively. ZCash [ZEC], which had started the privacy craze with its explosive gains over the past two months, was down 7.8% in 7 days.
Monero [XMR] used to be an extremely popular privacy coin, but it was delisted from many leading centralized exchanges due to regulatory pressure over untraceable transactions.
As a consequence, it has not rallied as swiftly as ZEC, but it was still up by 13.1% over the past week.
Will the Monero gains continue?
The past week’s losses for some of the large privacy sector assets were likely to be a swift retracement rather than the end of the rally, based on the price action on the daily timeframe for these coins.
If ZEC can continue to rally and Bitcoin [BTC] bounces toward $108k, the privacy narrative might find buyers once again amid stronger market sentiment.
Source: XMR/USDT on TradingView
This would be beneficial for Monero as well.
XMR trend had been bullish since its breakout past $300 in September. The moving averages served as a dynamic support and captured the steady bullish momentum of Monero.
The RSI has also been above neutral 50 for the better part of the past three months, agreeing with the steady upward momentum. The OBV’s gains alongside Monero showed buying pressure backed up the rally.
On top of that, XMR struggled to secure a daily close above $418 despite a brief wick to $470. The $418 region also marked the May high, strengthening its role as resistance.
What levels matter next?
The Fibonacci tools highlighted the 50% level at $367.5, which held as support and produced a push toward $396.
From here, bulls needed a close above $418 to target the $518 level.
The $518 zone carried weight as both a Fib extension and the prior cycle top from 2021.
By contrast, a daily close below $367 would signal weakening momentum and open room for a deeper pullback.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion