Monero (XMR) has shown a sharp increase in value amid emerging network security concerns. Despite positive movements, Kraken has paused deposits amidst a 51% attack threat.
Network Security Issues for Monero
Currently, Monero is priced at $260.94, with a market capitalization of $4.81 billion. Trading volume over the past 24 hours surged by 88% to $93.16 million. However, analysts report that a mining pool, Qubic, briefly controlled more than 50% of the hashrate, raising decentralization concerns. Kraken suspended Monero deposits after discovering that Qubic controlled over 50% of the hashrate and mined more than 80% of blocks during this episode.
Technical Analysis and Breakout
Chart analysis on TradingView highlighted a breakout above a descending channel that had persisted since August 8. The price rallied from $232 to above $262. Technical indicators reflect strong inflows, with the Relative Volatility Index declining from 93 to 64. A critical support zone was identified at $257, and holding that level could confirm the bullish momentum.
Liquidation Trends and Market Sentiment
CoinGlass reported that long liquidations dominated the latest trading moves. Data revealed heavy long exposure between $250 and $234, totaling more than $1 million. Market sentiment remains neutral, indicating a balanced outlook. Observers noted that increased inflows and volume growth signal renewed trader confidence.
The rise of Monero amid network security concerns and Kraken's actions highlight the importance of monitoring decentralization within blockchain networks. This situation requires careful analysis from both traders and platforms dealing with cryptocurrencies.
