Monero Plummets 15.96% Amid 51% Attack Fears and Network Instability

Monero (XMR) has experienced a sharp decline of nearly 15.96% in the past week, with the price dropping to $251.35 in the last 24 hours, and over 25% in the past month, marking one of the most severe drops in 2025 [1]. The selloff is attributed to growing fears of a 51% attack on the Monero network, allegedly orchestrated by the Qubic mining pool, which has reportedly accumulated more than half of the network’s hashrate [1]. This development has led to significant instability, including the appearance of 60 orphaned blocks in the last 720 blocks, raising concerns about the network’s integrity [1].

Investors are now scrambling to exit the market, with trading volume surging and the price breaking through multiple support levels that had held for months [1]. The bearish momentum is reinforced by key technical indicators. The Relative Strength Index (RSI) for XMR stands at 25, placing it in oversold territory, while the Average Directional Index (ADX) has reached 29, signaling a strong downward trend is in place and likely to persist [1].

The decline has pushed XMR to its lowest level since May, erasing much of the summer rally’s gains and casting doubt on its future as a secure and private cryptocurrency [1]. Qubic, led by former IOTA co-founder Sergey Ivancheglo, claims its actions were not a malicious attack but a demonstration to expose potential vulnerabilities in Monero’s network, suggesting that the move could help the privacy coin prepare for future threats [1]. However, many in the crypto community remain skeptical, with Ledger CTO Charles Guillemet stating that Monero appears to be under a successful 51% attack [1].

For now, traders are closely watching key price levels. XMR is currently testing immediate support at $250 and could face a critical test of the $240 psychological level. Strong support is expected between $220 and $225, while resistance levels stand at $270 and the broader $290–300 range, which aligns with the 50-day EMA and key psychological barriers [1]. If the price breaks below $250 and continues lower, it could trigger a deeper correction toward the $200 level. Conversely, a rejection of the bearish scenario and a move above $270 could set the stage for a potential recovery toward $300.

The broader crypto market remains relatively bullish, with other privacy coins like Zcash and Dash showing positive returns [1]. This contrast highlights the unique vulnerability Monero faces, given its reputation for anonymity and resistance to surveillance. If the 51% attack is sustained, it could fundamentally undermine Monero’s value proposition, triggering further losses. A network recovery or a hard fork, however, could restore confidence and reignite bullish momentum.

The situation underscores the fragility of even well-established blockchain networks when faced with coordinated mining strategies and economic incentives that shift hashrate concentration. It also raises important questions about the future of decentralized mining and the potential for new forms of non-malicious "attacks" driven by financial incentives rather than outright sabotage [1].

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[1] Monero Crashes on 51% Attack Fears: Here’s What the Charts Say Is Next for XMR (https://decrypt.co/334814/monero-xmr-price-51-attack-whats-next)