Monero Surges 9% as Bitcoin Breaks $77,000… Are Privacy Coins Making a Comeback?

▲ Monero (XMR) ©

Amid escalating tensions between the United States and Iran, the market's attention is focused on Bitcoin, the leading cryptocurrency, which has surpassed $77,000, demonstrating strong support, and privacy coins like Monero and Dash, which are leading an explosive rally.

According to investment media FXStreet on April 22 (local time), the global macro economy is faltering as the U.S. decides to extend the blockade of the Strait of Hormuz amidst a breakdown in peace talks, yet the overall virtual asset market maintains surprising stability. Bitcoin (BTC) is currently trading above $77,000 as of Wednesday, solidifying its position despite fears of a downturn.

Amidst this short-term volatility, the derivatives market delivered a harsh blow of liquidations to those betting on a decline. Out of a total of $330 million in liquidations over the past 24 hours, short position liquidations accounted for an overwhelming $197 million. This indicates a massive short squeeze (buying pressure resulting from the liquidation or covering of short positions), wiping out bear forces and strengthening upward momentum.

On this day, the surge in privacy coins was particularly prominent in the altcoin market. Monero (XMR), which surged a whopping 9% the previous day, is currently above $380, continuing an explosive rally. Technically, it has broken through the 50-day, 100-day, and 200-day exponential moving averages clustered around $360, establishing a strong short-term uptrend. The Relative Strength Index (RSI) on the daily chart is at 68, closely approaching the overbought zone, and the Moving Average Convergence Divergence (MACD) line has firmly crossed above the signal line and the zero line, indicating that bull forces have taken control of the market. If the ascent continues, the $429 Fibonacci 50% retracement level is expected to be the primary resistance.

In contrast, Dash (DASH), which rose 7% the previous day and is trading around the $36 mark, faces technical resistance unlike Monero. It is currently precariously supported at the 50-day exponential moving average of $35.80, but it is trapped below the downward-sloping 100-day and 200-day exponential moving averages, suggesting strong selling pressure if it attempts further gains.

The Moving Average Convergence Divergence (MACD) line remains below the signal line, indicating that it has not escaped the overall bearish structure, and the Relative Strength Index (RSI) at 51 also indicates neutral momentum. The media warned that if Dash gives up the $35.81 defense line, there is a risk of a sharp drop to the $29.84 support level.

*Disclaimer: This article is for investment reference only and is not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*