The privacy asset market is experiencing a drastic shift, as Monero surpasses 500 dollars for the first time since May 2021. This significant rally occurs simultaneously whilst its main competitor, Zcash, faces an abrupt drop caused by mass resignations within its leadership team, according to recent market data.
The XMR asset has demonstrated impressive trading strength, registering a rise of over 6% on Sunday and accumulating 20% over the last week. The price briefly touched the 500.66 dollar mark, sitting dangerously close to its all-time record of 517.50 dollars, which was originally established in April of the year 2021.
On the other hand, investor confidence appears to have shifted toward XMR due to the administrative chaos currently engulfing the Zcash (ZEC) project. The Electric Coin Company team resigned en masse, citing unsustainable internal disputes regarding the project’s direction, which provoked an immediate collapse in the market value of ZEC.
Institutional stability attracts capital towards the privacy leader
Furthermore, renewed interest in this sector has been backed by strategic reports from institutional giants like Grayscale and Coinbase in recent days. These financial firms highlight the growing demand for financial confidentiality in an increasingly strict global regulatory environment, positioning Monero as the most solid and clean option for investors.
However, technical analysis suggests caution, given that previous breakout attempts at this level resulted in severe corrections of up to 95%. If history repeats itself, although Monero surpasses 500 dollars momentarily, it could retreat toward the key support zone located between 200 and 270 dollars in the short term.
Will the price break historical resistance and reach new highs?
Likewise, there is a clearly bullish scenario where a sustained breakout above the resistance band of 500 to 520 dollars would invalidate the bearish trend. If this happens, the price could skyrocket toward 775 dollars, following Fibonacci retracement projections and marking a new historical milestone for the asset this year.
Finally, the market watches closely to see if this momentum will consolidate or if sellers will take control again at this critical technical resistance. In this decisive context, the leading privacy cryptocurrency defines its immediate future between the historical consecration of prices or a deep and prolonged correction.
