- XMR displayed a major price action amid controversies hounding the Monero ecosystem. Here’s why.
Monero (XMR) staged a significant rally in the last 24 hours heading to the start of the regular work week. The privacy token sharply rose by over 7% from a $287.24 low to a $308.38 high within the period, making it one of the biggest gainers in the crypto market this Monday.
As of 8:00 AM (UTC), Monero’s price is still holding near its daily top at $307. This hints at a sustained upward momentum in the short run.
The soaring price of Monero came despite the security issues gripping its ecosystem after the Qubic drama and its recent 18-block reorganization.
Monero’s 18-Block Reorg Issue
On-chain watchdogs like the pseudonymous OrangeFren.com on the X social media platform recently sounded the alarm on another security exploit on Monero. This comes hot on the heels of Qubic’s 51% attack last month that threatened the integrity of the chain.
Qubic notably secured over 50% control of Monero’s hashrate last month. However, Sergey Ivancheglo, the founder of Qubic network going by the alias “Come-from-Beyond” on X, clarified that their move was only intended to maximize their mining revenue on the XMR ecosystem and not for other malicious purposes.
The latest issue stems from an 18-block blockchain reorganization that exposes Monero to double-spending attacks. This event rewrites more than half an hour of transaction history on a chain instead of a minor reorganization involving only one or two blocks in a Proof-of-Work (PoW) network, which could signal a deliberate manipulation.
Why XMR Rallied Amid the FUD
Despite the red flags, a notable portion of the Monero community and some market participants viewed the events differently. Instead of seeing the 18-block reorg as a sign of weakness, some viewed it as a stress test of the network’s resilience. The fact that the network quickly recovered from the reorganization without a lasting impact on its operations exhibited such a trait.
Additionally, there are ongoing efforts from the Monero community to counter sophisticated and well-funded attacks, similar to Qubic’s stunt. Members of the group are looking at the prospect of introducing a masternode as a second-layer counterbalance.
Taking from the models implemented by the Dash and Firo networks, the measure lays down an additional layer of consensus independent from the mining process. The masternode is a special full node run by a Proof-of-Service (PoSe) protocol, requiring operators to lock a substantial amount of the chain’s native crypto as collateral to act in the ecosystem’s best interest in exchange for a portion of block rewards.
Technical trends during the weekend also reinforced the market’s peculiar reaction. XMR recently broke above its seven-day Simple Moving Average (SMA) at $278 and 30-day SMA at $269, which ignited a bullish outlook for its sustained rally in the short run.
The token’s seven-day Relative Strength Index (RSI) suggested a possible pullback due to overbought conditions after peaking at 87 on Sunday, but the Moving Average Convergence Divergence (MACD) at over 4 points supported a bullish divergence scenario.
Disclaimer: The facts compiled within this article are only for informational purposes. They do not serve as financial advice or product recommendations from the author or the Blockzeit team. Readers should not base their trades or investment decisions solely on this limited data.
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