Monero Builds Breakout Structure With XMR Eyeing $750 Target

Monero (XMR) is approaching a potential breakout from a cup and handle pattern on its two-week chart, with a key neckline near $480 according to analysis. Derivatives metrics such as rising open interest ($92M) and positive funding rates (0.012%) reinforce bullish momentum for XMR. Zcash's governance issues and liquidity outflows have shifted investor focus to Monero, boosting spot inflows and market share in the privacy coin sector.

Monero (XMR) shows signs of forming a cup and handle breakout pattern on its two-week chart, potentially signaling a continuation of a bullish trend above $480 according to technical analysis. This pattern, if confirmed, could serve as a catalyst for further price appreciation, with some analysts suggesting a target range of $750–$1,800.

Derivatives metrics also support the bullish narrative. Open interest has risen to $92 million, and positive funding rates of 0.012% indicate strong buyer interest. Institutional and whale activity is also notable, with large positions reinforcing XMR's momentum.

Monero's on-chain activity remains stable, distinguishing it from other privacy coins. This consistency in transaction volume has provided a solid foundation for long-term growth, even as other privacy-focused assets have seen more volatile demand according to market data.

What Is Driving Monero's Price Action?

A key factor behind Monero's recent strength is the contrast with Zcash (ZEC), which has faced governance instability. These issues have shifted investor attention toward Monero, which has maintained a decentralized and consistent development model.

Zcash briefly overtook Monero in market capitalization in 2025 due to its optional privacy model, which allows for institutional adoption. In contrast, Monero enforces full privacy by default, which has historically limited its exchange availability.

Despite these challenges, Monero's technical upgrades in 2025, including CLSAG/Bulletproof+ enhancements, have strengthened its efficiency and privacy guarantees. However, these improvements have not translated into broader institutional adoption, as regulators continue to view Monero's default anonymity as a compliance risk.

What Are the Key Risks to Consider?

While the technical and derivatives indicators are positive, Monero still faces challenges related to adoption. Its limited availability on major exchanges remains a barrier to broader institutional and retail participation. This contrasts with Zcash, which has gained traction with hybrid privacy infrastructure.

Additionally, regulatory scrutiny is a concern for privacy-focused assets like XMR. For example, the European Union's DAC8 directive, which requires detailed user and transaction data reporting, is driving demand for privacy tools. However, the use of XMR may be illegal under certain legal frameworks, highlighting the continued tension between privacy and compliance.

Monero's developers have responded with increased activity, with weekly core commits reaching an all-time high. This reflects a strong commitment from the decentralized development community, which helps avoid the risks associated with centralized governance.

Despite these developments, investors should remain cautious and conduct thorough due diligence, as market dynamics can change rapidly in the crypto space.