Monero (XMR), a privacy-focused cryptocurrency, has reached a significant milestone by surpassing the $500 mark for the first time since its peak in May 2021. This achievement is a testament to the growing demand for financial confidentiality in the increasingly regulated crypto landscape. On Sunday, XMR briefly hit $500.66, representing a 6% rise, and a 20% increase over the past week. This surge brings it closer to its record high of around $517.50, which was reached in April 2021.
XMR/USD daily chart. Source: TradingView
The Rise of Monero and the Fall of Zcash
The rise of Monero stands in stark contrast to the turmoil that has engulfed its rival, Zcash (ZEC). The Electric Coin Company (ECC) team behind Zcash resigned en masse, citing intolerable working conditions and board disputes over the project’s assets and direction. This fallout has revealed deep rifts in Zcash’s leadership, particularly around its bootstrapped project and funding allocations. As a result, ZEC’s price plunged over 20% days after the mass withdrawal, hitting a weekly low of around $360 over the weekend.
ZEC/USD daily chart. TradingView
Institutional Support for Monero
Monero has also received support from a wave of bullish institutional commentary. Companies such as Grayscale and Coinbase have highlighted privacy coins as a key growth theme, citing the increasing demand for financial confidentiality in an increasingly regulated crypto landscape. With Zcash in transition, traders seem to favor Monero as a cleaner privacy risk.
Crypto Privacy in 2026: Compliance-Friendly Tools Take Center Stage
The growing demand for financial confidentiality has led to increased interest in privacy-focused cryptocurrencies like Monero. As regulatory pressures mount, investors are seeking compliance-friendly tools that can provide a higher level of anonymity and security. Monero’s rise is a testament to this trend, and its potential for further growth is significant.
The Monero Fractal: A Warning Sign
However, a closer look at Monero’s price history reveals a potentially bearish fractal. Similar breakout attempts have occurred seven times in the past, each one failing and followed by sharp corrections ranging from around 40% to 95% towards ascending trendline support. If history repeats itself, XMR is at risk of entering an extended correction phase, sending the price higher towards $200-$270, an area that coincides with lower trendline support and prevailing Fibonacci retracement lines.
XMR/USD two-week chart. Source: TradingView
Conversely, a sustained breakout above the $500-$520 resistance would invalidate the bearish fractal. In this scenario, XMR could follow the path of cryptocurrencies that broke out after multi-year consolidations in 2025, opening the door for a rally towards $775, a Fibonacci retracement line and a new all-time high this year.
This article does not contain any investment advice or recommendations. Every investment and trading activity involves risks, and readers should conduct their own research when making their decision. For more information, visit https://cointelegraph.com/news/monero-xmr-hits-500-first-time-since-2021-zcash-fumbles?utm_source=rss_feed&utm_medium=rss_category_market-analysis&utm_campaign=rss_partner_inbound
