After Years of Rejections, Monero Eyes Long-Term Support at $422

Monero faces long-term $422 resistance, with repeated rejections historically triggering declines, now showing potential to transform into future support.

The recent Monero rally followed Zcash profit rotations, causing $12 million in short liquidations and accelerating upward momentum across privacy-focused coins.

Multi-year “cup and handle” breakout and 2025 network upgrade are boosting investor interest and pushing Monero.

Monero (XMR) has surged over 20% this week and it is pushing towards long-term resistance around $422. The crypto is showing renewed momentum following sector-wide profit rotations and technical breakouts.

Persistent Resistance and Historical Retracements

Monero has faced $422 as a key monthly resistance for years, with previous rejections triggering major declines. The first,second and third rejection resulted in a 94% ,77% ,43% pullback. Each move illustrated persistent selling pressure at this price point.

Recent trading activity suggests that this resistance may be weakening over time. Analysts have observed that repeated testing of $422 could turn the level into support.

Crypto market analyst Ali Charts noted that past rejections around $450 acted as a brick wall,and observed a potential for more downside toward $265 or even $135 if Monero fails to break higher.

The current price action shows Monero attempting to move past $422 once again. If successful, the level may transform into a foundation for future gains, following a typical pattern in cryptocurrency price evolution.

Market Dynamics and Short Liquidations

The recent rally follows significant profit rotation from earlier in November as traders shifted attention to Monero, driving approximately $12 million in short liquidations over seven days, according to CoinGlass.

This surge aligns with low liquidity conditions, amplifying upward price movements. Santiment data also reported increased social activity around privacy coins, reflecting growing investor interest.

Monero’s move above $420 brought short squeezes,showing how capital rotation within the privacy coin sector can accelerate price momentum. The dynamics mirror trends often seen when traders rotate gains across related altcoins.

Technical Breakout and Network Upgrade

Chart patterns indicate Monero has completed a multi-year “cup and handle” setup. The breakout above $400 projects potential targets near the previous all-time high of $517.

Beyond technicals, Monero developers plan to implement Full-Chain Membership Proofs which aims to enhance transaction privacy and speed, attracting long-term investors ahead of deployment.

Renewed demand for privacy-focused transactions has emerged despite regulatory delistings. Decentralized exchange volume has risen, suggesting organic interest. Monero now approaches the $500–$520 zone, which may determine whether bullish momentum continues.

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