Monero’s Price Rally Is Starting to Look Like Silver’s Historic Breakout, Top Trader Finds
The rally marked a decisive breakout for XMR after months of consolidation, placing the token back on the radar of both technical traders and macro-focused crypto investors.
- Monero briefly surged above $595, setting a new multi-year high before retracing.
- The rally followed a confirmed breakout from a long-term consolidation pattern.
- Rising interest in privacy coins and redirected liquidity supported the move.
- Technical momentum remains strong, though short-term indicators signal overheating
The move accelerated in early January after Monero cleared a long-standing resistance zone that had capped price action since late 2021. Once that barrier gave way, buying pressure expanded quickly, driving price vertically into new cycle highs. The push above $595 represented a fresh all-time high on several spot venues before short-term profit-taking set in.
Breakout structure points to larger trend shift
From a market structure perspective, Monero’s rally did not emerge from a low-liquidity spike. Instead, it followed a multi-month basing pattern that resembles a classic cup-and-handle formation on higher timeframes. December’s breakout confirmed the pattern, triggering follow-through buying that has so far held above former resistance levels.
Veteran chart analyst Peter Brandt highlighted the broader setup by comparing Monero’s long-term structure to historical commodity breakouts, particularly silver. His comparison suggests that extended periods of compression can precede explosive upside once price escapes a rising cap, a framework that appears to align with XMR’s recent behavior.
Source: Peter Brandt X
Privacy narrative adds fuel to the rally
Beyond technicals, renewed attention on privacy coins has played a role. Ongoing regulatory pressure and delistings affecting Zcash-related markets appear to have redirected liquidity toward Monero, which remains the most liquid and widely used privacy-focused cryptocurrency. That shift coincided with a sharp rise in spot volume during the breakout phase, reinforcing the strength of the move.
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Despite the pullback from the highs, Monero has so far avoided a deeper retracement. Price remains well above its December breakout zone, suggesting the market is digesting gains rather than reversing trend.
Indicators show strong momentum, but overheating risk
On the 4-hour chart, momentum indicators reflect the intensity of the move. RSI pushed deep into overbought territory near 80 at the peak, signaling short-term exhaustion. At the same time, MACD expanded aggressively into positive territory, confirming strong bullish momentum but also hinting that upside may slow without a consolidation phase.
If price continues to hold above former resistance, analysts are watching the $640 region as a potential upside extension for the current leg. A failure to stabilize, however, could open the door to a broader pullback toward the mid-$520s, where prior demand emerged.
For now, Monero’s breakout has shifted the broader narrative. After years of relative stagnation, XMR is once again behaving like a trend asset rather than a range-bound altcoin.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
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