Crypto rally offsets Monero privacy bug FUD as XMR explodes 38% in 9 days

Crypto rally offsets Monero privacy bug FUD as XMR explodes 38% in 9 days
Photo by Yosh Ginsu on Unsplash

Key Takeaways:

  • Monero (XMR) tweeted about a bug in its algorithm that can expose user transactions.
  • Though the Monero community was apprehensive, XMR prices rallied upwards.
  • The crypto total market cap gained 31.8% from July 21 to July 29.

NEW DELHI (CoinChapter.com) — On Tuesday, Monero (XMR), a privacy-oriented cryptocurrency, tweeted about a bug spotted in its algorithm. Ironically, the bug may expose users’ transactions under certain conditions, which will compromise their privacy. However, XMR prices remained unaffected, as the digital currency registered its ninth green candle in as many days on July 29.

The gains appeared as the total crypto market continued its bull run and increased its total market cap by 31.8% from July 21’s low of $1.176 trillion. Thus, the crypto rally might be a probable reason why XMR prices remained immune from the FUD created by news of the bug.

Monero Bugged

Justin Berman, a software developer, found the bug in Monero’s decoy selection algorithm. In detail, Monero uses decoy transactions to obfuscate the original transaction, making it untraceable. Monero responded with a Twitter thread in which it highlighted that the bug only affected a tiny fraction of XMR transactions.

Also Read: Central banks snub Bitcoin, rake in gold as inflation fears hit exchequers.

Moreover, the bug occurs when a user spends their funds immediately (under 20 mins). If a transaction takes place within 20 mins, the bug will likely identify it as the real one among several other fake transactions.

However, the bug does not reveal addresses or transaction amounts and only persists in the official wallet code, Monero added. The privacy crypto advised users to wait an hour (or longer) before spending their ‘newly received’ XMR to mitigate risks. The developers assured users that fixing the bug will not require a hard fork (full network update).

Monero also stated that funds are not at risk.

Optimistic Price Chart

Monero (XMR) rebounded from support at $180.76 to begin a bullish rally that has lasted nine days. XMR gained 38.5% from July 21’s low of $178.838 to reach Thursday’s high of $247.759. In the same time frame (July 21-27), the overall crypto market registered similar growth of 31.8%. The crypto market rally began after positive statements about Bitcoin from Tesla CEO Elon Musk during the B-Word Conference.

Monero price trends on the daily chart. Source: XMRUSD on Tradingview.com
Monero price trends on the daily chart. Source: XMRUSD on Tradingview.com

XMR prices have moved above the 50-Day (Green) Moving Average trend line on the daily chart, which indicates that the cryptocurrency is bullish in the short-term range. Moreover, the 50-Day MA and 20-Day Exponential (Yellow) MA move to form a support confluence at $218.341. If XMR pulls back, bulls will likely try to consolidate at the confluence support.

Also Read: Polkadot’s DOT among top 5 held crypto-assets across hedge funds, research shows.

However, if XMR falls further, it will find support at $180.76, which has historically been strong support for the cryptocurrency. Interestingly, the current bull run started from the same support.

Resistance for XMR lies at $250 and then at $280.

Momentum Oscillators for XMR on the daily chart. Source:  XMRUSD on Tradingview.com
Momentum Oscillators for XMR on the daily chart. Source: XMRUSD on Tradingview.com

The relative strength index for XMR is 63.63, currently neutral, albeit a bit close to the overbought range. However, the RSI line is now moving horizontally, reducing fears of a trend reversal.

MACD, the trend-based momentum oscillator, is bullish for XMR. The MACD line (difference of 12-Day and 26-Day EMA) is above the MACD signal line (9-Day EMA of MACD), which the MACD histogram bars show. Moreover, the MACD cycle seems only to be halfway, which means the bull run for XMR is likely to continue.

Once Monero sorts through the bug debacle, bulls will target the following resistance levels. At the time of writing, XMR was trading at $243.17, up 3.23% on the day.

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