Privacy coin Monero (XMR) has rebounded 17% this week, clawing back ground lost in last week's slide after Bitcoin (BTC) defended its $60,000 support.
Key Points:
- Monero has climbed 17% this week, with the bounce potentially stretching toward 33% if it reaches $391.
- Bitcoin's defense of $60,000 and a short squeeze near $340 drove the relief rally.
- Fresh post-quantum upgrade plans added to the privacy coin's improving mood.
Monero Rebound Tracks Bitcoin's $60K Defense
The bounce eased a steep drawdown that hit the wider market last week, when record ETF outflows and a risk-off mood drove Bitcoin under $60,000 and pulled most altcoins down. XMR had sagged toward the $300 region before buyers stepped back in.
Bitcoin did the early heavy lifting. The largest cryptocurrency touched roughly $59,100 on Friday, then recovered above $63,000 on short covering and renewed institutional demand. More than $500 million in bearish bets closed within a day, while rising exchange reserves left a warning that some holders were shifting coins back toward trading venues.
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Short Squeeze Powers The XMR Bounce
The rebound ran on more than Bitcoin's stability. Liquidation data pointed to a dense cluster of short positions near $340, and the climb likely flushed those leveraged bears out and forced them to buy back exposure. Analysts had flagged similar squeeze conditions building as the market swept the $60,000 zone.
Upside liquidity also sits near $360 and above $380, levels that could draw price if volatility holds. Demand for privacy assets adds a steadier base, since tightening surveillance rules and a wave of exchange delistings keep a committed group buying XMR, still the largest default-privacy coin, regardless of broader risk appetite.
Post-Quantum Plans And The $391 Test
Monero's rebound also drew support from development news. Its research lab advanced post-quantum encryption work this month. The effort builds on the FCMP++ privacy overhaul and has eased holder worries about the longer-term quantum threat to its cryptography.
The 200-day simple moving average near $391 now marks the main hurdle. Clearing it would stretch the weekly gain from 17% to roughly 33%, an outcome that hinges on Bitcoin staying above $60,000 as the RSI reclaims neutral ground.
Monero's 2026 has been a wild ride. The coin printed an all-time high near $800 in January before a regulatory-driven slump cut it to about $285 by February, a fall of more than 60%. Every relief rally since, across March, April and May, has climbed toward the 200-day average before sellers stepped in and dragged it back toward $300, the floor that has framed the privacy coin's recent range.
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