Monero (XMR) Crashes 26% From ATH, Price Rally Over?

Monero reached an all-time high of $798 on January 14 but has since dropped 26%. According to TradingView.

A $282 million social engineering attack led to the theft of Bitcoin and Litecoin, with the stolen assets rapidly converted into Monero, contributing to the price surge and subsequent pullback. As reported by AInvest.

Analysts attribute Monero's rise to growing interest in privacy-focused tokens and upcoming protocol upgrades but note regulatory risks, including potential EU bans by 2027. According to The Defiant.

Monero (XMR) climbed to an all-time high of $798 on January 14, driven by rising interest in privacy-focused tokens and expectations around protocol upgrades. However, it has since dropped 26%, trading at $590 as of January 18, 2026.

The price surge followed a $282 million social engineering scam targeting a hardware wallet, leading to the theft of 1,459 Bitcoin and 2.05 million Litecoin. The stolen assets were rapidly converted into Monero via instant exchanges and cross-chain protocols like THORChain, exploiting Monero's default anonymity features, including ring signatures and stealth addresses. Crypto News reports.

Analysts at 10x Research attribute the rise in Monero's price to growing interest in privacy-focused tokens and anticipation of upcoming protocol upgrades. A new version of the Monero software, v 0.18.4.5 Fluorine Fermi, was released, resolving Ledger Monero app crashes and improving synchronization. TradingView notes. Despite the drop from its all-time high, technical indicators suggest the rally might not be over, as Monero remains above key moving averages.

What Triggered the Price Drop After the All-Time High?

Monero's 26% drop from its all-time high of $798 followed a rapid price surge driven by increased demand for privacy-focused tokens and the aftermath of the $282 million social engineering attack. AInvest reports. The attack exploited the victim's lack of caution, not a technical vulnerability in the wallet itself, highlighting the growing threat of user-error-based scams in the crypto space. According to AInvest.

The stolen assets were converted into Monero, which, due to its default anonymity features, made the transaction trails nearly untraceable. The Defiant highlights. This event underscores the role of privacy coins in facilitating untraceable transactions and their susceptibility to being exploited in large-scale hacks.

How Do Privacy Features and Regulatory Risks Affect Monero's Future?

Monero's privacy features, such as ring signatures and stealth addresses, make it a preferred choice for those seeking anonymity in transactions. However, these features also raise regulatory concerns, with the EU considering a potential ban by 2027. AInvest notes. The incident involving the social engineering attack has intensified scrutiny on privacy coins and their use in illicit activities. The Defiant reports.

Analysts note that while the rally may not be over, the price is volatile and could experience further fluctuations due to regulatory pressures and the inherent nature of privacy-focused tokens. Monero's position as a leader in privacy coins remains constrained by limited exchange availability and regulatory uncertainty.

What Are the Implications for the Broader Market and Investors?

The Monero price surge and subsequent drop highlight the broader market's sensitivity to large-scale events such as social engineering attacks and regulatory developments. The incident underscores the importance of user education and caution in handling digital assets. Crypto News reports.

Investors should be aware of the risks associated with privacy coins, including their potential use in illicit activities and regulatory challenges. The growing trend of crypto foundations funding independent watchdogs to increase transparency, as seen with Hyperliquid Foundation's donation to crypto investigator ZachXBT, reflects the industry's push toward accountability and trust. KuCoin reports.

As the crypto market matures, the demand for privacy-focused tokens like Monero is expected to continue growing. However, this growth is likely to be tempered by regulatory actions and the need for greater transparency and accountability in the digital asset ecosystem. Bitget notes