Key highlights:
- XMR has moved above $500 and is testing a major resistance zone between $520 and $580
- THORChain’s direct Monero trading launch helped drive activity, with open interest rising from $131 million to nearly $320 million
- A break above $540 could open the door to $597, though overbought conditions may trigger short-term consolidation
Monero has been one of the best-performing cryptos over the past month. After spending most of the year stuck in a wide consolidation range, the XMR price finally broke past the key $500 level and is now pushing against resistance levels that traders have had their eyes on for months. It's been a long time coming.
Part of that move has been fueled by improving market structure. Another part comes from a major ecosystem development, THORChain's latest upgrade introduced direct Monero trading, allowing users to swap XMR against Bitcoin, Ethereum, and stablecoins without relying on centralized exchanges.
Monero is outperforming Bitcoin
Crypto analyst Ardi drew attention to Monero's relative strength profile in a recent chart, asking followers if they had "slept on" the move. His analysis shows the XMR price trading at approximately $507.16 and carrying a "STRONG" label against Bitcoin on a relative strength indicator.
You all slept on it, didn't you?
monero:native / Monero https://t.co/O0e9seO1UQ pic.twitter.com/SUYFKIHWHj— Ardi (@ArdiNSC) August 30, 2026
Relative strength measures how an asset performs compared to another benchmark asset. In this case, Monero has been outperforming Bitcoin, a signal many traders use when looking for leadership within the altcoin market.
The chart also shows that the XMR price has spent the past year trading inside a large range stretching from roughly $160 to $580. With price now trading above $500, Monero is operating in the upper section of that range and moving closer to the major resistance zone between $520 and $580.
THORChain upgrade brings a new demand driver
Fundamentals are helping the bullish case as well. BSCN News reported that Monero gained more than 10% in a single day and over 45% during August, making it the strongest monthly performance for XMR since April 2021.
The spark came from THORChain's Version 3.20 upgrade, which added direct Monero trading support. Now users can swap XMR directly with Bitcoin, Ethereum, and stablecoins, all through THORChain's decentralized setup.
Monero Surges as THORChain Opens Direct Monero Trading
Monero has gained 10% in 24 hours and more than 45% in August, marking its strongest monthly performance since April 2021.
The rally comes as THORChain launched version 3.20 with direct monero:native trading support. Users… pic.twitter.com/LCGh2xD9vd— BSCN (@BSCNews) August 31, 2026
The upgrade also introduced Protocol-Owned Liquidity and a Stable Reserve mechanism for stablecoin swaps. These additions improve liquidity management across the network and increase utility for users who want decentralized access to Monero.
Market participation has increased alongside the upgrade. Data cited by BSC News shows XMR open interest rising from approximately $131 million to nearly $320 million during August. Open interest measures the total value of active futures contracts and is commonly used as a gauge of trader participation.
Liquidation data has also favored the bulls. Short liquidations exceeded long liquidations during the rally, creating additional buying pressure as bearish traders were forced to close positions.
On-chain data shows Monero is not in capitulation territory
The on-chain picture looks different from what traders have seen in many altcoins this cycle. Glassnode drawdown data places Monero approximately 46% to 47% below its all-time high. That may sound substantial, but context matters.
Many altcoins have suffered drawdowns exceeding 80% during the same period. Kaspa, for example, dropped more than 87% from its peak. Several other major altcoins experienced declines of similar magnitude.
Monero's drawdown profile points to a market that corrected but avoided full capitulation. That often indicates stronger holder conviction and more stable demand. Based on circulating supply estimates of roughly 18.4 million XMR and prices around $500, Monero's market capitalization stands near $9 billion to $10 billion, placing it among the larger digital assets in the market.
The drawdown chart also shows recovery momentum improving as XMR climbs away from its lows. That recovery aligns with the strength visible in both price action and derivatives activity.
The XMR charts point toward higher levels
We had a look at the daily Monero chart, and the trend remains firmly bullish. The XMR price is trading around $537.35, up over 10% on the day. It's already cleared the key $500.65 Fibonacci level, which has flipped from resistance to support.
Daily XMR chart analysis
The next big target is $597.28, which lines up with the 1.272 Fibonacci extension. Above that, the larger resistance zone around $780 comes into view. The 100-day SMA at $361.11 is also supporting the trend. With the price nearly $180 above it, the bigger picture is still bullish.
Volume is backing this move too. Daily volume hit about 92,250 XMR, showing more people jumped in during the rally. But there's one warning sign. The daily RSI is at 84.27, deep in overbought territory. Readings above 70 are strong, but above 80 usually means a pause or pullback could be coming.
The shorter-term chart gives a better view of what's next. XMR is testing resistance near $539.92, an important Fibonacci level on the 4-hour timeframe. Break above that, and $548 comes into play, followed by the $560–$600 zone.
4-hour XMR chart analysis
Support starts around $520, with stronger support near $500. Those levels matter because they line up with the breakout area that kicked off this move. As long as XMR stays above $500, buyers are in control. A move above $540 would make a run at $597 much more likely.
Where could Monero price go next?
The XMR price ends the month with several factors working in its favor. THORChain's direct trading integration has improved accessibility, open interest has climbed from $131 million to nearly $320 million, and the daily chart continues to trend upward above key moving averages.
The immediate hurdle remains the resistance zone around $540. If buyers clear that level, the path toward $560, $580, and eventually $597 becomes much clearer. The biggest risk comes from overextended momentum indicators. Daily RSI above 84 and four-hour RSI near 75 indicate that some consolidation would be healthy after August's rally.
According to CoinCodex’s 1-month XMR price prediction, Monero is expected to reach $551.22, which is above the current trading range around $534-$537. If that target is achieved, the XMR price would clear the immediate resistance zone near $540-$548 and move closer to the broader breakout area between $560 and $580.
