Monero’s Bullish Momentum: Will XMR Benefit from ZEC’s Hype?

The privacy coin sector is regaining market attention, and Monero (XMR) is emerging as the standout contender. While Zcash (ZEC) recently captured speculative hype, traders and analysts are increasingly shifting focus toward XMR’s structural strength, consistent usage, and technical maturity. 

In a market where narratives rotate quickly, Monero’s quiet accumulation phase may be transitioning into a decisive breakout moment.

Top crypto analyst Josh Olszewicz recently described Monero’s chart as the “best-looking setup in crypto,” highlighting a textbook ascending triangle forming just below historical highs after years of consolidation. 

This long compression phase suggests that XMR may be primed to replicate or even outperform the explosive move ZEC experienced earlier, but with far stronger fundamentals underneath.

If privacy narratives continue to dominate amid tightening regulations and capital controls, Monero’s position as the most battle-tested privacy blockchain could become increasingly difficult for the market to ignore.

Key Takeaways

• Monero is forming a rare high-timeframe breakout structure, supported by rising volume and real on-chain usage.

• Zcash’s recent volatility may trigger capital rotation into XMR, which has shown stronger price stability and adoption metrics.

• Privacy demand remains a long-term catalyst, positioning Monero as a potential leader heading into 2026.

Trade XMR and other leading cryptocurrencies easily on Bitrue and position yourself ahead of the next privacy-driven market rotation.

Monero Technical Breakout: Why Traders Are Watching XMR Closely

Ascending Triangle Signals Long-Term Strength

Monero’s price structure reveals a multi-year ascending triangle, one of the most reliable bullish continuation patterns in technical analysis. 

Unlike short-term speculative breakouts, this formation has developed through extended consolidation, suggesting that selling pressure has been gradually absorbed.

XMR recently posted a 15% weekly gain, outperforming Bitcoin and most top-20 cryptocurrencies. Price advanced from the $400 region to above $416, while the $409 level flipped decisively into support, reinforcing bullish market structure.

If Bitcoin maintains stability above $85,000, analysts project near-term upside targets between $420 and $438, with further expansion possible if volume accelerates.

Read Also: What Is Hyperlane? Analyzing the Current Trend

Volume and On-Chain Metrics Confirm Real Demand

Unlike many narrative-driven rallies, Monero’s momentum is supported by tangible usage. Daily trading volume reached approximately $169 million, while on-chain data shows around 26,000 daily transactions, more than triple Zcash’s activity.

This divergence highlights a critical distinction: XMR demand is rooted in utility and privacy adoption, not merely speculative positioning.

Read Also: Why Is Nockchain Useful? Analyzing Current Popularity

XMR vs ZEC: A Tale of Stability Versus Speculation

Zcash Hype Shows Signs of Exhaustion

Zcash recently experienced a surge in attention, with spot trading volume briefly approaching $1 billion. However, the move proved unstable. ZEC has since retraced nearly 40%, exposing signs of speculative overheating rather than sustainable accumulation.

By contrast, Monero declined only 12% during the same correction period, underscoring stronger holder conviction and reduced panic selling.

Market Cap Rotation Favors Monero

Monero has reclaimed its leadership position in the privacy sector, with a market capitalization of approximately $7.75 billion, surpassing Zcash’s $6.5 billion. Notably, XMR now commands an estimated 93% of total privacy coin trading volume, signaling clear market preference.

As traders rotate away from volatility-heavy assets, Monero appears to be absorbing liquidity fleeing ZEC’s unstable price action.

Read Also: How High Can GLEEC Go? Analyzing the Current Uptrend

Volume Trends and Blockchain Fundamentals Strengthen XMR’s Case

Consistent Usage Over Speculative Spikes

One of Monero’s most compelling advantages lies in its blockchain fundamentals. High transaction counts, steady wallet activity, and continued demand for censorship-resistant transfers indicate a network that is actively used, not merely traded.

While exchange delistings have limited accessibility in some regions, they have not diminished on-chain engagement. In fact, these constraints may be reinforcing Monero’s core value proposition: privacy without compromise.

Regulatory Climate Favors Privacy Assets

As governments tighten oversight, impose capital controls, and expand surveillance frameworks, demand for anonymity-preserving financial tools continues to rise. Both XMR and ZEC benefit from this trend, but Monero’s regulatory resilience and long-standing adoption give it a structural edge.

If capital continues flowing into privacy assets during broader market pullbacks, XMR may emerge as one of the most defensively bullish assets into 2026.

Can XMR Mirror or Surpass ZEC’s Rally?

Monero’s current momentum is not built on hype cycles or temporary narratives. Instead, it reflects years of accumulation, consistent network usage, and a maturing technical structure now approaching resolution.

While Zcash helped reignite interest in privacy coins, its volatility may ultimately act as a catalyst for Monero’s next leg higher. If XMR breaks its long-standing resistance zone, the move could mark one of the most significant privacy-coin expansions of the current market cycle.

Read Also: MERL Breaks $0.85 Resistance: Next Target After 18% Daily Gain

FAQ

What is driving Monero’s current bullish momentum?

Monero’s rally is driven by a technical breakout setup, rising trading volume, strong on-chain activity, and renewed demand for privacy-focused cryptocurrencies.

How does Monero compare to Zcash in terms of usage?

Monero processes significantly more daily transactions than Zcash, indicating higher real-world usage rather than speculative trading dominance.

Can ZEC’s hype positively impact XMR?

Yes. Capital rotation from ZEC’s volatility may benefit XMR as investors seek more stable exposure within the privacy coin sector.

Is Monero still affected by exchange delistings?

While some exchanges have delisted XMR, on-chain activity remains strong, suggesting that core adoption has not been meaningfully disrupted.

Could privacy coins lead the next crypto trend?

If regulatory pressure and surveillance continue to increase, privacy-focused assets like Monero could become a dominant narrative heading into 2026.

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