Monero Price Analysis: XMR Could Rally to $400 If Resistance Is Broken

Highlights:

• Monero is forming a bearish engulfing at the $338.31 resistance
• Rally off this resistance could send XMR to $400 
• Failure at resistance could see Monero drop to $304 short term

Monero (XMR) is one of the top performers among the large-cap cryptocurrencies in the last 24 hours. In this period, Monero has rallied by 10.07% to trade at $337.38. Monero trading volumes are also on the rise in the day, a signal that bulls are coming in strongly in the day.

At the time of writing, Monero trading volumes stood at $207.2 million, an increase of 10.66% in the day. Such a surge in volumes alongside the price is an indicator that the price could be headed much higher in the short term. There are a couple of factors likely to help sustain Monero’s intraday rally.

Monero Community Considering Change In Consensus Mechanism

One of them is the proposal to overhaul the entire Monero consensus algorithm. In August, a Monero mining pool known as Qubic announced that it controlled over 50% of all Monero hash rate. This was proven true after Qubic went ahead to do a 6-block reorganization of the Monero network. While this triggered investor fear at the time, the Monero community has made a push towards making sure the issue never happens again. 

A proposal that is driving the excitement around Monero is the proposal for a Masternode-style layer of Quorum. This is proposed to act as an overlay to the already existing Proof-of-Work consensus mechanism. The proposal is a big deal as it is an indicator that the Monero community does not see the August event as isolated.

Instead, they see it as a strategic vulnerability and are looking for solutions that forestall such a thing from recurring in the future. By extension, it is returning user confidence in Monero as the premier privacy coin in the market.

Mining pool centralization: Temporary rolling DNS checkpoints, Share or Perish, and Lucky transactions. @justinberman95: Share or Perish still seems the most promising solution to me and definitely worthy of continued research.
tevador: Any updates about checkpoints?… https://t.co/EkuHJYs1MG

— Monero Research Lab (Unofficial) (@MoneroResearchL) October 23, 2025

Fluorine Fermi Upgrade Set to Enhance Monero Privacy Capabilities

Investors are also excited about Monero because even as the community works on strategic solutions, network upgrades keep coming. One of the latest network updates that is exciting the market is the release of CLI v0.18.4.3, which is code-named Fluorine Fermi. The upgrade is exciting the market because it can protect against Spy nodes. These nodes usually try to map IP addresses of Monero users.

This is a big deal as it enhances the core use case of Monero. Monero has always taken pride in untraceable transactions. With the upgrade and the upcoming strategic shift in the consensus algorithm, Monero could see a surge in investor numbers going into the future.

Monero just dropped a privacy bombshell with Fluorine Fermi! This upgrade outsmarts sneaky spy nodes trying to track your moves. Think of it as rerouting secret mail to dodge nosy carriers. XMR hit $347, now at $340. Stay private, folks! https://t.co/qTzveDDE37

— Two Foam Guys (@FoamTwo) October 19, 2025

Pro-Privacy Narrative Favors More Upside for XMR

Monero is also getting a boost from the increased pro-privacy coins narrative in the markets. The growing overreach of government when it comes to digital privacy is forcing more people to seek privacy-as-value. This explains why privacy coins have been among the best-performing cryptocurrencies in recent weeks.

As the need for privacy grows, top privacy coins like Monero could see their value increase. Monero’s scarce supply could trigger a rally to new highs as this narrative continues to gain traction. Speculation that the Federal Reserve could soon cut interest rates could also help feed into the narrative going into the short to medium term.

Monero isn’t a trend it’s a statement of independence. 🟧#Monero #XMR #CryptoFreedom #PrivacyFirst pic.twitter.com/cDRVBrQ86O

— Long𐤊at ɱGodӾon (@GSonLngKat) October 23, 2025

Technical Analysis – XMR Forming A Bearish Engulfing At Key Resistance

After a rally for the better part of the day, Monero is forming a bearish engulfing pattern. This is after hitting strong resistance at $338.31. If bulls regain control and push Monero through the $338.1 resistance, then a rally to prices above $400 could follow.

On the other hand, if bears take control as seen through the bearish engulfing pattern, a correction could follow. In such a scenario, a correction to the $304.11 support could follow in the short term.