Monero (XMR) Beat Bitcoin, Ethereum and Solana This Month. Can It Hold $600?

Over 30 days, Monero (CRYPTO: XMR) has experienced a significant boost of 12.4%, contrasting markedly with Bitcoin (CRYPTO: BTC), which fell by 3.2%, Ethereum (CRYPTO: ETH), which dropped 12.2%, and Solana (CRYPTO: SOL), which saw a decline of 14.6%. Monero’s price stands at $609, up 1.3% over 24 hours.

This privacy-focused coin has risen while some more commonly tracked cryptocurrencies have lost value.

This 30-day increase caps off a remarkable 70.1% gain over 90 days. On October 21, XMR closed at $621, its 90-day high. It then slipped to $598 on October 28, just shy of $600, before rebounding above it. Meanwhile, Hyperliquid (CRYPTO: HYPE), the 11th-largest cryptocurrency by market capitalization, also rose 10.1% over 30 days, but XMR’s 12.4% gain remains more impressive.

What Drove Monero’s Rally: FinCEN’s Retreat and Leveraged Traders

One key catalyst for Monero’s rise came from outside the cryptocurrency market. In early October, the Financial Crimes Enforcement Network (FinCEN) withdrew a proposal that would have introduced stricter reporting requirements for crypto mixing. Mixing aims to conceal the origins of coins, and Monero does this automatically with every transaction.

Privacy coins often trade at a lower value because buyers fear regulatory action could prompt exchanges to delist them. Washington’s decision has eased delisting fears, making buyers more confident about investing in Monero. Reports from October 25 linked this regulatory shift to Monero’s two-week price increase, though its impact remains uncertain.

Sentiment around XMR got another boost from veteran chart analyst Peter Brandt, who named Monero his top pick among major cryptocurrencies in a post on October 6. After this endorsement, XMR crossed the $600 threshold, as reported on October 19.

A less influential factor appears to be futures trading. Futures let traders profit from price fluctuations without owning the underlying coins. Some traders use borrowed funds, known as leverage, to finance these positions. As of October 21, data revealed a new buildup of leverage in Monero futures, similar to a pattern seen before XMR’s sharp drop in January.

Leverage can lead to forced buying, particularly when traders holding short positions, trades that profit from a price decline, face losses. If they cannot maintain their positions, exchanges may automatically close their trades, resulting in liquidations and potentially a short squeeze. However, reports from October 25 indicated that liquidation totals had not yet been released, leaving a short squeeze unverified.

XMR Trades Above Its 20-Day, 50-Day and 200-Day Averages

At $609, Monero is positioned above its 20-day average of $575, its 50-day average of $556, and its 200-day average of $420. This trend suggests that both short-term and long-term movements are pointing upward.

Still, the situation surrounding the $600 mark is somewhat uncertain. XMR peaked at $621 on October 21, dipped to $598 on October 28, and has now bounced back to $609, with a 1.5% increase over seven days. This pullback appears to be a temporary pause.

If XMR declines, buyers might first try to establish support at the 20-day average of $575, then the 50-day average of $556. A close below $575 could indicate that the break above $600 has failed. The 30-day low of $519 on October 9 highlights how quickly Monero can lose ground.

Why Monero Rose While Bitcoin Fell With Oil Prices

Bitcoin’s 3.2% decline over 30 days reflects factors outside the crypto world. On October 22, Brent crude surged above $111 a barrel, driving inflation concerns and dampening enthusiasm for speculative investments. Ethereum and Solana often amplify Bitcoin’s movements, leading to their larger declines of 12.2% and 14.6%, respectively.

In contrast, Monero caters to a distinct audience. It attracts buyers who prioritize anonymity, and while several exchanges have delisted XMR over regulatory issues, this has tightened the market for the 13th-largest cryptocurrency. As a result, even a modest wave of privacy demand can move XMR significantly, more than Bitcoin.

The interest in privacy coins isn’t exclusive to Monero. Zcash, another major privacy coin, also saw a sharp rise over two weeks but remains down over 30 days. As traders often group these two coins together, any setbacks in Zcash, such as delays or disappointments tied to its NU7 network upgrade set for around November 5, could similarly impact Monero’s price.

Can Monero Hold $600 Into November?

Monero’s hold on the $600 level may be weaker than it appears. The latest daily close of $598 on October 28 suggests $600 has not yet solidified as reliable support, an area buyers consistently defend. Moreover, the rally relies on FCMP++, Monero’s upcoming privacy upgrade, which is still in testing and could hide a transaction’s sender among over 150 million possibilities, up from the current 16.

The FinCEN reversal removed a threat, but new buyers still have to show up, and futures leverage is still building. XMR’s highest close in 90 days was $621, so a close above it could signal that outright buyers have taken over from leveraged traders. So can the Monero price hold $600? Only if outright buyers keep showing up as leverage builds.

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