Key Insights:
- Monero price pulls off 46% plus rally in August, making it the most bullish month since April 2021.
- XMR open interest approaches its historical high, accompanied by a spike in positive funding rates.
- THORChain’s native Monero support could improve XMR accessibility while reinforcing growing demand for privacy-focused cryptocurrencies.
Monero (XMR) price extended its rally into the weekend while most top coins faced declining momentum. The privacy coin has been one of the most bullish cryptos, having started its current rally in July.
Monero price just kicked off Sunday’s trading session with a push above $500. XMR has been on a streak of green weekly candles for the last 7 weeks and is up over 46% since the start of August.
The last time that Monero price delivered such a bullish month was in April 2021. It exchanged hands at $521 at press time, up over 11% in the last 24 hours.
The bullish XMR price action reflects robust demand, largely driven by hype around privacy coins. Interestingly, Monero managed to achieve this despite being blacklisted by some of the top crypto exchanges.
Monero Price Risks Elevated Volatility as Open Interest Approaches Historic Highs
XMR price was already high in overbought territory at press time, yet momentum was still pushing higher. A liquidation-induced buying might be taking place.
According to Coinglass, a spike in Monero open interest was one of the key highlights in August. For context, its open interest surged from as low as $131 million on 2 August to approach $260 million.
The Monero open interest almost doubled within the last 2 weeks. This signaled heavy demand from the derivatives market, as more traders sought exposure to its performance.
The massive spike in open interest may explain the recent volatility. Short liquidations were nearly 10 times as high as long liquidations. In other words, XMR price may be tapping into liquidation-induced buying as short sellers faced the hammer.
It is worth noting that the actual liquidation figures may be higher, given the scant exchange coverage. Nevertheless, Monero’s open interest was rapidly closing in on its historic peak of $277 million achieved in January.
Thorchain Support Underscores Renewed Bullish Confidence
Beyond liquidation-driven volatility, Monero Crypto may also be rallying on the back of a recent Thorchain announcement. As noted earlier, XMR has been heavily banned across top exchanges. However, this does not appear to have slowed adoption, judging by its recent price action.
However, access to Monero might actually be improving thanks to Thorchain. The latter has reportedly introduced native Monero support through a recent upgrade.
The Thorchain upgrade, which happened earlier in the week, focused on infrastructure support for Monero’s privacy features. This upgrade will reportedly enable native swaps, allowing crypto holders to exchange coins like ETH, BTC, and others for XMR.
At the core of the update and the Monero crypto rally was the growing focus on privacy. Other top coins, such as Zcash, have also experienced significant demand over the last few weeks.
In conclusion, Monero price action revealed incredible resilience despite being blacklisted by most exchanges. Its performance was clear evidence that privacy is becoming a core segment of the crypto market.
But what does this mean for the future of the XMR privacy coin? Sustained demand may push Monero into a 4-digit price tag. As far as Monero price predictions are concerned, the probability of it surging to $1000 in 2026 jumped from as low as 6% to 26% this month.
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