Key Insights
- •Monero hit a record high of $798 on January 14, driven by rising demand for privacy tokens and protocol upgrades.
- •A major crypto theft led to stolen assets being converted to Monero, contributing to a brief price surge before market correction.
- •Monero remains technically strong, trading above key moving averages despite a 26% decline from its all-time high.
Monero (XMR) reached an all-time high of $798 on January 14 after a consistent rally beginning in September. The surge lasted five consecutive days from January 10 through January 14, pushing the token into the spotlight as privacy-focused cryptocurrencies gained popularity.
On January 11, developers released Monero version 0.18.4.5, known as Fluorine Fermi. This update addressed several technical issues, including a crash affecting Ledger hardware wallets and compatibility for Ledger Nano Gen5 devices. Other improvements included fixes to wallet synchronization, daemon processes, and issues with key image marking. These enhancements contributed to growing user confidence in Monero’s functionality during the price rally.
Social Engineering Attack Adds Market Pressure
A social engineering incident reported on January 10 intensified interest in Monero. The attack involved the theft of 2.05 million Litecoin and 1,459 Bitcoin, amounting to $282 million in digital assets. The stolen funds were reportedly converted into Monero, boosting demand and trading volume during the rally period. However, the news later contributed to price volatility and raised concerns around Monero’s role in obfuscating asset flows.
Despite falling 26% from its peak, Monero remains above key technical support levels. At the time of reporting, Monero traded at $590, down 5.98% in the past 24 hours, though it retained a 19% weekly gain. The token continues to trade above its 50-day and 200-day moving averages, positioned at $349 and $455 respectively. These levels had been converted into support following a major golden cross pattern in November, signaling continued bullish momentum.
Market Outlook Remains Mixed
While the recent pullback has interrupted Monero’s upward trajectory, market indicators suggest the broader uptrend remains intact. Analysts point to sustained interest in privacy solutions and technical improvements as contributing factors. However, the token’s association with illicit transactions continues to draw regulatory scrutiny, which could influence future price action.