Monero Shaken by 18-Block Reorg, But XMR Price Surges Higher

Security Concerns Grow as Monero Faces 18-Block Reorg Attack, Privacy Coin Defies Pressure

The cryptocurrency market has once again turned its attention to Monero (XMR) after the network endured a sudden 18-block reorganization this week. The event has reignited concerns about potential 51% attacks, a longstanding fear for proof-of-work blockchains, especially those with smaller mining ecosystems.

Monero, one of the most established privacy-focused cryptocurrencies, is widely recognized for its ability to shield transaction data from external tracking. Its strong encryption has earned it both praise and controversy. While it has attracted advocates who value financial privacy, it has also drawn scrutiny from regulators who argue that its anonymous nature enables illicit activity.

This latest reorg attack has placed Monero’s security under renewed scrutiny, raising questions not only about its technical resilience but also about the broader future of privacy coins in a regulatory tightening environment.

Source: X

What Happened: Understanding the 18-Block Reorg

A blockchain reorganization—or “reorg”—occurs when miners produce a longer version of the chain that supersedes an existing segment. This forces the network to discard previously validated blocks, effectively rewriting part of its recent history. While reorgs can sometimes happen naturally, larger ones raise concerns about malicious intent.

In Monero’s case, the 18-block reorg meant that certain transactions, once considered valid, were at risk of being reversed. This carries the threat of double spending, where the same coin can be used in two different transactions, undermining the integrity of the network.

For merchants and businesses that accept XMR as payment, the event served as a warning. Many have been advised to increase the number of confirmations they require before finalizing payments. This could slow down transaction settlements, reducing Monero’s appeal for everyday commerce.

Expert Warnings: “Living Under a Damocles’ Sword”

Security experts reacted swiftly. SlowMist co-founder, who goes by the handle @evilcos, compared the situation to “living under a Damocles’ sword.” The phrase underscores the constant risk that privacy coin networks face when hash power becomes concentrated in too few hands.

According to SlowMist, repeated reorganizations open the door to systemic attacks that could destabilize Monero’s reputation as a secure digital currency. “If a single entity gains enough mining dominance, they can manipulate the network’s history. That’s the nightmare scenario for any proof-of-work system,” one researcher said.

This is not the first time Monero has faced such scrutiny. Analysts have long warned that the network, despite its decentralization efforts, is vulnerable to hash power centralization.

Market Reaction: XMR Price Defies Fear

Interestingly, while many expected Monero’s price to fall after the security scare, the opposite occurred. The XMR token gained 1.11% in the past 24 hours, trading at $289.03, outperforming the broader crypto market, which slipped 0.36%. Over the past month, Monero is up 21.39%, with steady weekly growth of 6.59%.

Source: CMC

Analysts point to three major reasons for this counterintuitive rally:

• Technical Breakout: XMR maintained strong Fibonacci support after breaking the $276.72 level, attracting short-term buyers.

• Network Resilience: The community recently addressed concerns about mining centralization linked to the Qubic pool, redistributing hash power to smaller pools such as P2Pool.

• Leverage Demand: The launch of XMR/USD trading on GMX, with leverage up to 100x, injected new momentum into the market.

Technical Indicators Support Bulls

Traders tracking Monero’s charts note that momentum remains on the bullish side. The token currently sits above its 7-day SMA ($273.46) and 30-day SMA ($267.48). The Relative Strength Index (RSI) stands at a neutral yet rising 60.58, while the MACD histogram has turned positive at +2.66.

A key level to watch is the 200-day SMA at $279.26. If Monero can maintain a close above that, analysts predict a push toward $305.74, a target based on Fibonacci extension models.

“This price action shows that the market isn’t panicking,” said a trader at a Singapore-based crypto desk. “Investors see Monero’s quick recovery from mining centralization as proof of resilience.”

Ongoing Security Concerns

Despite short-term optimism, the debate over Monero’s long-term security remains unresolved. In August, Qubic’s mining pool briefly controlled 35% of Monero’s hashrate, sparking fears of a potential 51% attack. While the community’s rapid redistribution of mining power reduced Qubic’s dominance to below 15%, the incident highlighted how fragile decentralization can be.

Exchanges also took notice. Kraken temporarily paused Monero deposits during the height of the centralization scare, citing risks of double-spending and chain instability. While deposits later resumed, the event reminded investors that exchange confidence is directly tied to network security.

“Decentralization is not just a buzzword—it’s the foundation of trust in blockchain,” said blockchain analyst Laura Chen. “If mining power consolidates again, Monero could face repeat attacks. The community must remain vigilant.”

The Bigger Picture: Privacy Coins Under Pressure

The incident also comes at a time when privacy coins are under growing regulatory pressure worldwide. Several major exchanges, including Binance and OKX, have delisted privacy-focused tokens citing compliance challenges. Authorities in the EU and US have hinted at stricter enforcement against cryptocurrencies that obscure transactions, arguing they facilitate money laundering and tax evasion.

Yet, Monero’s supporters insist that privacy coins serve a legitimate purpose. They argue that financial confidentiality is a fundamental right, and Monero provides tools that protect individuals against surveillance, data exploitation, and financial censorship.

“Privacy isn’t criminal,” said a Monero community spokesperson. “It’s essential for freedom in the digital age. Bitcoin was once seen as a tool for criminals too, but it’s now considered a legitimate asset class. Monero deserves the same recognition.”

Can Monero Maintain Its Momentum?

Monero’s track record suggests resilience. Over the years, it has survived exchange delistings, government crackdowns, and competition from other privacy coins like Zcash and Dash. Despite all challenges, it continues to maintain a loyal user base that values its unmatched privacy features.

For now, traders appear willing to look past the reorg and focus on the broader technical and market trends. But the lingering threat of mining centralization and regulatory heat means that Monero’s future will remain contested.

The coming weeks will be critical. If the network can demonstrate stability and its community continues to actively safeguard decentralization, Monero could strengthen its standing as the leading privacy coin. But if further reorgs occur, confidence could erode quickly.

As the crypto market evolves, one thing remains clear: Monero’s unique mix of anonymity, resilience, and controversy ensures it will remain a focal point in debates over blockchain security and digital privacy.

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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