Is XMR Becoming Bullish Amid Negative Sentiments?

Monero (XMR) has recently surprised traders by rallying more than 7% despite facing one of the largest blockchain reorganizations in its history. The incident involved an 18-block reorg that reversed around 117 transactions, raising concerns about network security.

Yet, instead of collapsing under pressure, XMR’s price jumped from $287.54 to $308.55 within hours. This move came even as the broader crypto market slipped about 1%, signaling that investors may see resilience, or opportunity, in the privacy-focused coin.

Read more: Hyperliquid’s USDH Stablecoin: What the Bidding War Means for DeFi

Monero Blockchain Reorg and Security Concerns

The reorganization began at block 3499659 and lasted 43 minutes, caused by Qubic, an AI-focused blockchain and mining pool that gained 51% hashrate dominance over Monero. This centralization risk sparked heated debate about Monero’s decentralization and future stability.

Key concerns include:

• The ability of one entity to dominate hashrate
• Increased vulnerability to double-spend or chain manipulation
• Lack of implemented solutions despite ongoing discussions

Developers are considering DNS checkpoints and other protocol changes, but these raise concerns about centralization versus security.

Why Did XMR Rally Despite Negative News?

Market behavior around XMR suggests that traders may have interpreted the reorg differently than expected. Possible reasons include:

• Belief in Monero’s long-term resilience
• Speculative buying driven by volatility
• Attempts by Qubic or large holders to stabilize the price

Whatever the driver, the rally highlights that price action does not always align with network fundamentals.

Risks Ahead for Monero Investors

Despite short-term bullishness, Monero faces ongoing risks. The dominance of a single entity threatens decentralization, and the lack of implemented safeguards makes the network vulnerable to future attacks.

Investors considering XMR should weigh:

• Technical risks of 51% attacks
• Potential market volatility from security news
• The balance between privacy use cases and trust in the network

Read more: Monero (XMR) Price Prediction 2025-2030: Can Privacy Coins Make a Comeback?

Final Thoughts

XMR’s price rally in the face of serious challenges shows the coin’s unusual market dynamics. While the community debates solutions to prevent future reorgs, investors must decide whether Monero’s privacy features outweigh the risks tied to centralization and security.

Secure Bitcoin trades. Smart crypto insights. Only at Bitrue.

FAQs

What caused the recent Monero reorg?

The reorg was triggered by Qubic, a mining pool and blockchain project, after it gained 51% of Monero’s hashrate.

How many transactions were affected?

Around 117 transactions were reversed during the 18-block reorganization.

Why did Monero’s price rise after the reorg?

Despite concerns, XMR rallied over 7%, possibly due to speculative buying, belief in resilience, or efforts by large stakeholders to stabilize the price.

Is Monero at risk of future 51% attacks?

Yes, unless new measures are adopted, the network remains vulnerable to dominance by powerful mining pools.

What solutions are being discussed to prevent attacks?

Ideas include DNS checkpoints and protocol changes, but these could also increase centralization.