Monero Price Hit by Qubic’s 51% Takeover, Can Bulls Fight Back?

Key Insights:

• Monero price dropped under selling pressure after Qubic’s 51% control event.
• Whale accumulation and leveraged short bias set up squeeze potential.
• On-chain data shows conditions for a rebound remain in place.

Monero (XMR) has been a tricky coin to trade lately. It’s still over 50% below its all-time high, and even though it’s up more than 75% in the past year, the last month and quarter have been rough.

Earlier today, XMR even popped up on the top gainers list for a short while before losing steam again. Now the price sits around $264.

The headlines about “51% control” have stirred fears, but the full story shows bulls still have a shot.

What Qubic’s 51% Control Means

The big talking point today is Qubic (QUBIC) taking more than half of Monero’s mining power, or “hashrate.” In blockchain terms, this is called “51% control.”

When a single mining group controls more than half the network’s power, they have the ability, at least in theory, to rearrange blocks, delay or reject transactions, or try something called a double-spend. That’s why “51%” gets so much attention.

But this wasn’t an out-of-the-blue hostile takeover. Qubic’s team calls it a stress test, which is like pushing a system to its limit on purpose to see how it reacts.

Qubic’s pool peaked at about 52.72% of Monero’s total hashrate, roughly 3.01 gigahashes per second. This was planned to run for a specific period in August.

The platform in question is a blockchain project that runs its own token (QUBIC) but also mines Monero as part of its operations.

Why could Qubic get so much power so fast?

They use a model called “Useful Proof of Work.” Simply put, they pay miners more than most pools do. They do this by mining Monero with CPU power, selling the Monero for stablecoins, and then converting that into QUBIC tokens for rewards.

The better the payout, the more miners join, which increases their share of the network.

How the Monero Stress Test Triggered Sell Pressure

News like this can make traders nervous. One common reaction is moving coins from private wallets to exchanges. This is what the data shows: Monero’s daily exchange net flows turned positive after a run of outflows. Around $740,000 worth of XMR moved onto exchanges.

When coins flow into exchanges, it usually means more potential sellers, and that often adds short-term price pressure.

This shift came at a time when Monero’s recent performance was already mixed. While long-term gains are still strong, the recent pullback has made traders cautious. The stress-test headlines added another reason for some holders to get ready to sell.

Why Bulls Aren’t Done Yet

Here’s where the story flips. Despite the short-term sell pressure, on-chain and derivatives data suggest the market could still lean bullish.

First, the liquidation map shows a heavy short bias; about $7.52 million in short liquidations compared to $4.5  million in longs. That’s close to double.

When too many traders bet on the price going down, they leave themselves open to a short squeeze. This happens when the price goes up instead, forcing shorts to buy back quickly, which pushes the price even higher.

Second, the move of coins to exchanges hasn’t turned into a flood. If net flows swing back to outflows, meaning coins leave exchanges again, supply on the market tightens. Fewer coins ready to sell often support price moves up.

Third, the technical setup still gives bulls a path. If Monero can hold its current support zones and push above the nearest resistance levels, the lopsided short positioning could be the fuel for a quick rally.

It is important to note that key resistance levels; $280 and $288, are in line with the short squeeze moves.

Here Is What Monero Traders Should Watch Next

Two key factors could decide Monero’s short-term direction. Watch Qubic’s hashrate share; if it stays above 50% for too long, confidence might stay shaky. But if it drops, the stress-test headlines lose impact, and the fear factor fades.

Also, watch the balance between shorts and longs. The current gap in positioning makes it easier for prices to spike if buyers show up. A modest shift in sentiment could start a chain reaction where shorts are forced to cover.

In short, Monero’s price drop today makes sense; the 51% control news, plus coins moving to exchanges, created short-term sell pressure. But the market’s short-heavy stance, potential for renewed outflows, and the chance to hold key support give bulls plenty of reasons to stay in the fight.