The XMR Price Has Surged This Year, Moving to Its Highest Level Since May 2021

The XMR price has surged this year, moving to its highest level since May 2021, as demand for privacy coins jumped after the Tornado Cash reprieve.

Monero (XMR) price has surged this year, reaching its highest level since May 2021 as demand for privacy coins soared following the recent developments with Tornado Cash and the Trump administration's stance on crypto.

Monero price is up for six consecutive weeks and has risen by over 226% from its lowest point in 2024. The coin's price surged after a US court ruling forced the Treasury Department to drop sanctions on Tornado Cash.

Like Monero, Tornado Cash was a privacy-focused crypto project that aimed to ensure transactions could not be tracked, posing significant challenges for law enforcement. However, its actions led to billions of dollars in criminal activity, prompting US authorities to intervene.

After sanctioning Tornado Cash and arresting its founder, authorities also pressured major exchanges and crypto firms to sever ties with the mixer.

Later, Tornado Cash filed a lawsuit to challenge the sanctions, which ultimately led to a ruling in its favor earlier this year. Following the ruling, the Treasury Department was forced to drop the sanctions.

The ruling on Tornado Cash, which was founded by Russian programmer Roman Torontonov, also had implications for Monero and other privacy-focused coins, as analysts noted at the time.

The administration of former President Donald Trump also posed significant legal issues for exchanges that listed Monero, leading to several firms, including Coinbase (NASDAQ:COIN) and Binance, deciding to delist the coin to avoid any potential issues.

However, the Biden administration has adopted a more crypto-friendly approach, especially with the Trump-era administration's actions being reversed.

Moreover, traders are optimistic that exchanges like Coinbase, Binance, and Crypto.com will eventually relist Monero. Many of these firms delisted the coin to avoid legal issues from US authorities.

While Monero is different from Tornado Cash, they both serve a common goal of ensuring transactions cannot be tracked. Monero does this by using ring signatures, which group transactions, making them hard to track.

It also uses stealth addresses and ring confidential transactions. Stealth addresses are one-time addresses for each transaction, while ring confidential hides the transaction amount. These features have made it popular with cyber criminals, including those using it to launder stolen Bitcoin worth over $300 million.

Monero price technical analysis

The weekly chart indicates that Monero price was in a tight range from 2022 to 2024. It remained between the support and resistance levels at $114.7 and $186.43, suggesting it was in the accumulation phase of the Wyckoff Theory.

The coin then made a bullish breakout and moved into the markup phase, characterized by more demand than supply. It remains above the 50-week and 200-week moving averages, with oscillators like the Relative Strength Index (RSI) and MACD indicators trending upward.

Technicals suggest that Monero's price will continue to rise, with bulls targeting the $400 mark. After reaching this point, it may enter the distribution and markdown phases, potentially leading to a price pullback.