Monero Jumps 56% In A Week — Can XMR Outperform Zcash in the Privacy Coin Comeback?

Monero has surged 56% in the past week, pushing past its eight-year-old peak and reclaiming dominance in the privacy coin sector. The token reached $797.73 on January 14, marking a new all-time high. XMR now trades at approximately $702.94, holding a market capitalization above $12.98 billion.

This rally positions Monero ahead of Zcash, which led the privacy coin resurgence in late 2025. ZEC climbed from around $30 in the summer to above $750 by November, marking a powerful rally that included a roughly 350% gain between October and November 2025 alone. Despite corrections, Zcash has maintained levels above $400, currently trading near $443.

The broader privacy sector has gained significant momentum, with the total market capitalization surpassing $73.4 billion and Monero and Zcash emerging as the leading assets, according to data from Coinmarketcap. Dash has outperformed both leaders with a 114% weekly gain. Analysts point to the $880 price level as Monero’s next target.

Privacy Coins Return to Spotlight Amid Compliance Shift

The privacy sector’s resurgence follows years of regulatory suppression and declining interest. Projects like Tornado Cash faced sanctions, and many privacy-focused tokens faded from relevance. That narrative changed in autumn 2025 when Zcash staged an unexpected rally.

Industry observers attribute the shift to a new technological approach. Current privacy projects focus on “programmable compliance,” protecting user data while accommodating regulatory requirements. This aligns with institutional demands for asset tokenization and compliant transaction frameworks.

The MiCA framework and CFT requirements have accelerated this evolution. Rather than pursuing indiscriminate anonymity, projects now integrate features allowing regulatory oversight when necessary. This positions privacy coins for adoption in finance, healthcare, and real-world asset sectors.

Venture capital firm a16z crypto published forecasts identifying privacy as a competitive advantage for blockchains in 2026. General partner Ali Yahya noted that privacy creates “chain lock-in,” as users resist migrating to networks that might expose transaction histories.

Ethereum co-founder Vitalik Buterin donated 256 ETH to privacy-focused messaging apps Session and SimpleX last November. The donation aimed to support systems avoiding phone numbers and centralized infrastructure.

Analyst Views: Capital Rotation Into Privacy Assets

Crypto analyst iL Capo of Crypto interprets recent price action as a structural market response. He argues that the long-standing obsession with transparency is giving way to demand for financial privacy.

While Bitcoin corrected sharply from its all-time high, privacy assets moved decisively higher. iL Capo views this divergence as capital rotation rather than speculative excess. Such rotations historically precede larger narrative expansions.

His thesis centers on programmability risks. As central banks explore digital currencies with rule-based restrictions, assets that cannot be frozen or controlled by central issuers increasingly function as hedges against systemic control.

The market continues searching for alternatives amid broader struggles. Privacy coins have moved to the top of many traders’ watchlists. Several analysts now see this sector as one of the more compelling narratives for 2026.

Technical Analysis

Monero’s daily chart displays exceptional bullish strength with price rising from $240 in August 2025 to a peak of $754.30. The token currently trades along the upper Bollinger Band, confirming strong momentum.

The MACD indicator shows extreme bullish divergence at historic highs. The histogram displays its strongest reading of the displayed period. The RSI reads 87.13, severely overbought territory that typically precedes consolidation.

Volume has spiked to 26.66K XMR, among the highest levels on the chart. This validates the breakout’s authenticity but may signal climactic buying conditions.

Key resistance levels stand at $754.30, $800, and the analyst target of $880. Support zones include $650, $580-$600, and the critical mid-Bollinger Band near $500-520.

The most likely near-term scenario involves consolidation between $650 and $780 over one to three weeks. A daily close below the 20-day moving average would signal momentum exhaustion. The trajectory remains bullish but requires caution at current extended levels.