Recent developments surrounding Monero (XMR) have stirred considerable uncertainty among traders. One of the most discussed topics is the 51% control by Qubic, affecting price dynamics and trading activity.
What Qubic’s 51% Control Means
The main talking point is Qubic's control over more than half of Monero's hashrate. In blockchain terms, this is known as '51% control'. When a single mining group controls more than half of the network's power, they can, at least theoretically, rearrange blocks, delay or reject transactions. Qubic refers to this as a stress test to test the system's resilience.
How Qubic’s Stress Test Triggered Sell Pressure
News like this can make traders uneasy, often leading them to move coins from private wallets to exchanges. This happened when nearly $740,000 worth of XMR was transferred to exchanges. When coins flow into exchanges, it usually indicates traders' intent to sell, which adds short-term price pressure.
Why Bulls Aren’t Done Yet
Despite the short-term sell pressure, on-chain and derivatives data suggest the market could still lean bullish. Specifically, if Qubic maintains its 50% hashrate control, it could continue to raise concerns. However, if this control changes, the fear factor fades. Additionally, a significant short bias could create conditions for gradual price increases.
While today's price drop for Monero can be explained by the 51% control news from Qubic and inflows to exchanges, remaining bullish signals may provide hope for market recovery.
