Monero price drops to $330 after Fluorine Fermi update

Monero price experienced a drop following the release of its latest network update Fluorine Fermi. The update was designed to protect users against ‘spy nodes.’

On Oct. 9, the privacy blockchain Monero launched a new network upgrade called CLI v0.18.4.3, otherwise known as Fluorine Fermi. The new update is aimed at enhancing user protection against “spy nodes” by strengthening security measures.

Spy nodes is a term used by the Monero (XMR) community to describe malicious nodes, large groups of nodes or botnets that are capable of calculating and matching IP addresses to transactions that take place on the network.

One of the features introduced through the upgrade is a smarter peer selection algorithm that is meant to help nodes avoid large subnet groups that are most often associated with surveillance activity, pushing users to connect with safer peers instead.

The release of the Fluorine Fermi update was publicized by a number of crypto media companies, with the original post receiving 71 reshares and 15,300 views. Such a major update on a mainnet would normally serve to boost the project’s token price by a significant percentage.

However, this was not the case for Monero price.

Instead of going up, the token has instead continued on its downward, having gone down by 0.8% in the past 24 hours, reaching a daily low of $328. In fact, the token has shown better performance in the past few days; with Monero price increasing by 2.2% in the past seven days and 26% within the past month respectively.

Monero price analysis

On Oct. 10, Monero price experienced a slight downturn following the launch of its Fluorine Fermi security update. It managed a slight recovery from the deep drop to $328. However at press time, XMR is trading around $336.81, having dropped by around 0.27% in the past few hours. The chart highlights the short-term volatility the token has experienced following the launch.

It appears to be nearing the $340 rejection level and may be headed towards a lower dip that could send it hurtling below $335 before stabilizing near the token’s 30-day period moving average at $336.90.

The slight dip in XMR’s price may reflect short-term market uncertainty as traders digest the implications of the new Fluorine Fermi upgrade, which introduced enhanced network security and efficiency improvements. In the past, Monero updates often have a tendency to spark initial volatility as miners and nodes adjust to new consensus rules, often followed by a recovery period once the network stabilizes.

If token is able to maintain its price at the $335 support level, XMR could consolidate before retesting the $340 to $342 zone. However, a break below $333 might open the door to further downside toward $328, especially if broader market sentiment remains cautious.