Monero (XMR) shocked markets early Monday with a 40% price surge, peaking above $320, a level unseen since May 2021.
The rally, flagged by on-chain investigator ZachXBT, followed a suspicious transfer of 3,520 Bitcoin ($330.7 million) allegedly stolen and laundered through instant exchanges. As traders scrambled for answers, the incident highlighted privacy coins volatile role in high-stakes crypto crime.
The Suspicious Transfer That Ignited the Rally
At 4:05 AM UTC, a wallet labelled “bc1qcrypchnrdx87jnal5e5m849fw460t4gk7vz55g” moved 3,520 BTC. ZachXBT traced the funds to six instant exchanges, where they were rapidly swapped for Monero. This sudden demand overwhelmed XMR’s liquidity, propelling its price upward. Furthermore, network activity remained stable, deepening suspicions of external manipulation.
Liquidity Crunch
Monero’s delisting from major exchanges like Binance and Kraken slashed its market depth. With fewer trading pairs available, large purchases now trigger sharper price movements.
CoinGecko data confirmed XMR’s order book depth lags behind similar-cap assets, magnifying Monday’s 50% spike. Analysts called the event a “perfect storm” of scarce supply and illicit demand.
Trading Volumes Spike
XMR’s 24-hour trading volume exploded from $50 million to $220 million, per Binance data. Short sellers faced $1.37 million in liquidations, mostly from forced buy-ins.
Open interest in futures contracts also hit a yearly high, signalling speculative bets. Despite the frenzy, Monero’s community avoided addressing the hack, focusing instead on upcoming protocol upgrades.
Technical Indicators Show Overbought Signals
Monero broke an ascending triangle pattern, rallying 19% intraday. Its Relative Strength Index (RSI) hit 83, far above the overbought threshold of 70. While bullish momentum persists, analysts warned of a potential correction. If support holds near $242, however, XMR could target $345 before stabilising.
Privacy Coin
The incident reignited debates about privacy coin’s role in crime. Finnish authorities recently traced XMR transactions in a ransomware case, proving even “untraceable” coins leave trails. Furthermore, Monero’s developers proposed EP159 and EP160 upgrades to ease compliance, hoping to relist on regulated exchanges. Critics argue such measures undermine the token’s core ethos.
Market Reactions and Broader Implications
While XMR dominated headlines, XRP rose 4% on ETF news, and Bitcoin held steady near $93,000. Equities dipped slightly, with S&P 500 futures down 0.6%. Analysts linked crypto’s resilience to softened U.S. regulatory rhetoric, though macroeconomic risks linger. For Monero, the surge shows a fragile balance between privacy advocacy and market integrity.
What does this mean for crypto markets?
Monday’s events reveal how crypto markets remain vulnerable to manipulation and crime. While Monero’s price corrected to $267 by afternoon, the incident underscores the need for robust liquidity and transparent oversight.
As regulators tighten scrutiny, privacy coins face existential choices: adapt or fade into obscurity. For now, traders brace for volatility, knowing the next hack could rewrite the rules overnight.
