Is Monero’s price surge a sign of growing privacy needs or market manipulation?

Monero (XMR), crypto’s favourite mystery coin, gave traders a heart attack (or a thrill, depending on their positions) on Monday with a jaw-dropping 50% price surge - rocketing 21% in just one hour. 

Analysts and traders scrambled to figure out what triggered this sudden crypto drama, but social media was quicker, flooding Twitter with polls, wild theories, and humorous memes. Was it institutional FOMO, everyday investors panicking about privacy, or something shadier?

A Bitcoin heist and some slippery moves

Adding spice to the story, blockchain sleuth ZachXBT dropped a bombshell, revealing a suspicious move involving more than 3,520 Bitcoin (BTC) - about $330.7 million - that ended up converted into Monero through six instant crypto exchanges. Monero’s notorious privacy features made the currency an obvious (though expensive) choice for hackers wanting to cover their digital tracks.

But here’s the funny part: converting that massive chunk of Bitcoin into XMR likely caused major "slippage," which is trader-speak for a not-so-fun scenario where the market moves against you during your transaction. The hackers might have lost as much as $66 million just by choosing Monero over something more liquid. Ouch!

The plot thickens: Derivatives market shenanigans

But wait, there’s more. At the same moment, the futures market went bananas. XMR’s open interest - basically, bets placed by traders on the coin’s future price - exploded to $35.1 million, way higher than expected. 

It seems someone already had around $11 million riding on Monero’s sudden pump, raising suspicions that this wasn't spontaneous.

Crypto veterans noted similarities with past exploits, like the infamous Mango Markets hack, where clever (and unethical) traders manipulated prices for profit. Crypto can't resist a good drama.

Privacy coins: Monero vs. Zcash - New crypto trend or risky business?

Despite all the drama, privacy coins like Monero and Zcash (ZEC) are increasingly popular with investors who value anonymity. Monero offers hardcore, mandatory privacy for those who want zero digital footprints, while Zcash offers optional anonymity, appealing to those who prefer flexibility.

Looking ahead, experts are optimistic. Changelly predictions for Monero’s price suggest a potential climb over $500 by 2027 - up a juicy 167% from its current $194 level. Zcash, recovering nicely, could more than triple in value, As per CoinCodex’s Zcash crypto price prediction for 2030, ZEC’s price could vary between $7.26 and $39.38., boosted by fresh upgrades and market optimism.

Monero technical outlook: Ready to jump into privacy coins?

Suppose this rollercoaster has you thinking about joining the privacy crypto bandwagon.

At the time of writing, XMR is holding at a critical resistance level of $274.48, and the daily chart shows a bullish bias. The 9-ema moving average crossing above the 21-ema moving average adds to the bullish narrative. However, the volume bars contracting indicates that the buying pressure is waning - hinting at a potential reversal.

Do privacy coins poke your interest? You can speculate on XMR/USD pair with a Deriv MT5 or Deriv X account.