Monero Defies Privacy Token Selloffs, Eyes $1,000 Rally on Technical Breakout

Amid a broader selloff in the privacy token sector, Monero (XMR) has emerged as a standout performer, gaining 13.1% over the past week while peers like ZKSync (ZK) and Dash (DASH) saw declines of 34.6% and 38.25%, respectively. ZCash (ZEC), which ignited the privacy narrative with explosive gains earlier, dipped 7.8%, but Monero's steady bullish momentum since its breakout past $300 in September has captured trader attention.

Technical indicators support the optimism, with moving averages acting as dynamic support and the RSI consistently above 50 for three months. The On-Balance Volume (OBV) breakout preceded the price surge, signaling early accumulation by larger players. Key resistance levels include $418 and $470, with a daily close above $418 potentially targeting $518—a level reinforced as the 2021 cycle top. Conversely, a drop below the Fibonacci 50% level at $367.5 could indicate weakening momentum.

Analysts like Donald Trades have fueled bullish sentiment, projecting a $1,000 target based on Monero's breakout from a descending channel and shift to higher highs and lows. If Bitcoin (BTC) rebounds toward $108,000, it could reignite the privacy narrative, further boosting XMR. Despite regulatory pressures leading to delistings from major exchanges, Monero's technical foundation suggests the current rally may be more than a short-term spike.