Monero Builds Breakout Structure With XMR Eyeing $750 and Beyond

Monero is approaching a potential breakout from a cup and handle pattern on its two-week chart, suggesting a continuation of a bullish trend if prices rise above $480 according to analysis.

Monero's derivatives market shows a bullish bias with rising Open Interest, positive funding rates, and large whale orders signaling a potential price rally above $500 as reported.

Monero's price surged following Zcash governance issues and liquidity outflows, allowing it to reclaim its position as a leading privacy coin with rising spot inflows and improved market sentiment according to data.

Monero (XMR) has drawn attention as it approaches a key technical level on its two-week chart. Analysts have identified a potential breakout from a cup and handle pattern, a formation that has been developing over several years. Prices pressing against the neckline at $480 are seen as critical, with the potential to signal a broader upward move according to technical analysis.

Monero's derivatives market also reflects growing bullish momentum. Open Interest (OI) in XMR futures has increased to $92 million, up from $82 million in early December. This rise in OI indicates new capital entering the market, which can fuel further price appreciation as indicated. Additionally, the funding rate for XMR has turned positive and has remained so, suggesting that long positions are gaining influence over short positions according to market data.

Monero's recent price action has also been influenced by developments in the privacy coin segment. Zcash (ZEC) experienced a significant decline due to governance issues and liquidity problems, shifting investor attention to Monero as a more stable alternative. Monero's spot inflows turned positive, indicating rising demand and investor confidence according to market reports. Despite this, Monero's limited availability on major exchanges like Binance and Coinbase remains a barrier to broader adoption as noted.

What Technical Signal Is Monero Showing for a Potential Breakout?

Technical indicators for Monero suggest a potential continuation of the uptrend. On the weekly chart, XMR/USD is above the 20-week moving average, with volatility indicators still in a positive range. The RSI is in the 60s, indicating a bullish trend without overextension . If Monero manages to break above $480 for two consecutive weeks, it could confirm a shift in market behavior and potentially lead to prices reaching as high as $1,500 to $1,800 according to analysis.

The pattern under analysis is a cup and handle formation, which is a classic technical analysis setup for bullish continuation. The price has been consolidating near key resistance levels, with several higher lows and smaller price movements observed . This pattern suggests that more buyers are aligning themselves with the resistance levels, increasing the likelihood of a sustained upward move if the breakout occurs .

How Do Derivatives Metrics Support a Bullish Outlook for XMR?

Derivatives metrics for XMR have turned increasingly bullish. Open Interest in XMR futures has risen to $92 million as of January 8, 2026, up from $82 million on December 27 according to data. This rise in OI indicates new or additional capital entering the market, which can support further price gains as reported. The funding rate for XMR has also turned positive in mid-December and has remained in positive territory, with a current rate of 0.012% according to market analysis. This suggests that longs are paying shorts, indicating a shift in market sentiment toward bullish positioning.

In addition, large whale orders in the futures and spot markets also support a bullish outlook. These orders are seen as a sign of institutional or high-net-worth investors committing to long positions in XMR according to derivatives data. The RSI on the daily chart is currently at 55, above the neutral 50 level, and the MACD lines are converging with the red bars diminishing, indicating fading bearish strength as observed. A bullish crossover in the MACD would further reinforce the bullish thesis for XMR.

How Is Zcash's Market Performance Affecting Monero's Price Action?

Monero's price has benefited from Zcash's recent struggles. Zcash has faced governance issues and liquidity problems, leading to a significant drop in its price. Monero, on the other hand, has seen a 5% price increase in a day when Zcash dropped by double digits according to market data. This shift in investor sentiment may reflect liquidity outflows from Zcash and a growing narrative around privacy coins.

Monero's spot inflows have turned positive, signaling rising demand and interest in the privacy coin segment. This trend reflects the broader market dynamics in the privacy-focused cryptocurrency space, with investors seeking alternatives to more transparent counterparts as reported. Despite its recent gains, Monero's limited availability on major exchanges remains a challenge to its broader adoption according to analysis.

Monero's position as a leading privacy coin is further supported by its untraceable transactions and advanced cryptography. Analysts highlight its value proposition rooted in privacy and security, with ongoing upgrades ensuring relevance amid growing regulatory and surveillance concerns according to industry analysis. As privacy-centric coins gain traction, Monero continues to attract users seeking an alternative to more transparent cryptocurrencies as noted.