Monero Under Siege: Will Privacy Bulls Charge Ahead as Alt Rank Heats Up?

Monero's network faces a storm—but its bulls might just thrive in the chaos.

As whispers of a potential attack rattle the privacy coin's infrastructure, traders are eyeing an unlikely opportunity. Could XMR's notorious volatility become its greatest asset?

The altcoin ranking shuffle continues, with Monero's loyalists betting on its resilience. Meanwhile, institutional suits still can't decide if privacy features are 'revolutionary' or just money laundering with extra steps.

One thing's certain: in crypto's Wild West, even network vulnerabilities get priced in as features.

Monero (XMR) has been trading sideways for almost 2 months, but it could be walking a fine line separating upside potential and a potential network attack.

While Monero maintained its position as one of the top privacy coins, recent developments underscored some security concerns.

Monero could soon be prone to a 51% attack courtesy of Qubic Vision. The AI-focused project recently revealed that it was on a mission to control a bigger share of Monero’s hash rate.

Qubic particularly noted that it was on a mission to secure 61% control of Monero’s mining. The announcement raised concern that achieving the objective WOULD result in the Monero network potentially becoming prone to an attack.

However, that outcome might not be the case because the ambiguity in the statement might be interpreted differently.

For example, it may have meant 51% control of the computation produced by the mining rigs that it sells.

Monero Tops LunarCrush’s Alt Rank list

Monero recently topped Alt Rank’s top 5 list, meaning it has been popping up more often in socials and crypto conversations. Moreover, it also made it clear that Monero was gaining traction.

The ranking also meant XMR was receiving more attention from both retail and large holders, which could potentially favor the bulls.

The ranking and network attack risks unveiled the balancing act between bullish and bearish sentiment.

The two situations may have canceled out any potential directional move. XMR maintained a narrow range, but the sideways movement eventually gave way to a strong upward or downward trend.

Although XMR price has been moving sideways, its dominance, which has been declining since May, attempted to pivot in favor of an uptrend.

Dominance recently slid into oversold territory, but the latest spike demonstrated signs of recovery. A dominance surge could possibly encourage an accelerated pace of accumulation.

XMR price exchanged hands at $324 at press time, which was still a narrow range. It also hovered within the 50% level, which further perpetuated the state of price limbo.

XMR still traded at a 95% premium from its lowest price point in 2024. This meant that despite its slide in late May and June, there were still a significant number of holders that did not take profit in anticipation that XMR could push higher.

One of the main reasons why holders remained optimistic was the fact that XMR had one of the lowest circulating supplies, which was significantly close to BTC’s supply.

Can XMR Price Pull Off a Bullish Move?

XMR bulls rallied by about 152% from its lowest price point in April to the latest local peak in May.

Zooming out on the weekly chart revealed that this latest rally looked similar to XMR price’s previous moves during the 2017 and 2021 bull runs.

The chart revealed an ascending resistance for the previous tops, and XMR was already about halfway towards retesting the same resistance.

The same chart suggested that Monero was about a 70% rally away from retesting the aforementioned resistance level.

XMR price also demonstrated some similarities in its performance between mid-March and the first week of April this year.

If it were to follow a similar path, then a pullback might be on the cards to shake out Leveraged longs, followed by a surge in demand.

A pullback could potentially send the coin to the next support level below $270. XMR price’s next MOVE will reveal the state of demand for the cryptocurrency.

Based on its past performance and dominance, XMR might experience a surge in demand once the overall crypto market regains bullish excitement.