Monero Smashes All-Time High as Privacy Coins Steal the Spotlight
Monero hits $590, setting a new all-time high as privacy coins lead crypto market action, driven by Zcash turmoil and rising privacy demand.
Grace Amelia 
Key Insights:
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Monero surges past $590, outperforming Bitcoin and Ether amid privacy coin rotation.
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Zcash plunges after leadership exits, boosting Monero as the preferred privacy token.
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Technical breakout positions Monero for potential gains toward $1,000 later in 2026.
Monero smashed a new record on January 12 as privacy coins outperformed a quiet crypto market. The move pushed XMR above $590, and this surge is linked to sharp rotation within privacy assets. Meanwhile, governance turmoil at Zcash redirected flows and reshaped sentiment across the sector.
https://x.com/ZypherHQ/status/2010685614430019985?s=20
Monero Breakout Reshapes Privacy Trade
Monero extended a multi month climb and reached price discovery, and momentum is accelerating. Trading activity expanded rapidly, and liquidity from offshore venues amplified the upside momentum. By midday in Asia, XMR traded near $580 and dominated privacy market performance.
The rally came after months of accumulation as major cryptocurrencies remained range bound, while research highlighted privacy demand as a key 2026 theme amid growing surveillance concerns, and Monero’s governance remained stable and predictable.
Technically, XMR cleared a multi year structure that capped price since the last cycle in the market. Momentum indicators mirrored patterns from prior expansions and signaled trend continuation. A sustained hold above former resistance could support higher targets later this year.
Zcash Selloff Highlights Governance Risk
Zcash moved lower after leadership exits, and the impact is significant across its ecosystem.
The Electric Coin Company team resigned following disputes with the Bootstrap Project board. Soon after, ZEC dropped over twenty percent and underperformed peer privacy tokens.
The decline contrasted sharply with XMR strength and altered relative value trades. Market participants treated Monero as a safer exposure while Zcash uncertainty persisted. This divergence is rooted in governance clarity and execution history.
ZEC briefly stabilized near the mid three hundreds after heavy selling pressure. Recovery efforts lacked volume support and confidence remained fragile. The episode reinforced how internal disputes can drive abrupt repricing.
Rotation Drives Privacy Coins Ahead of Market
Across the market, Bitcoin held steady while thematic trades drove altcoin gains. Ether posted modest advances but failed to match privacy sector momentum. This environment is defined by rotation rather than broad directional conviction.
Market makers noted suppressed funding rates set conditions for short covering. As liquidity returned after holidays, mid cap tokens responded quickly. Within this flow, Monero demand remained firm despite regulatory overhangs.
From a chart perspective, Monero faces resistance between $650 and $720. A clear break could open paths toward higher projections over coming months. Failure to hold key levels is expected to invite deeper pullbacks.
