The Monero blockchain fork has surged by nearly 100% in the past five days against a rising appetite for privacy-focused cryptocurrencies.
Haven Protocol (XHV) showed signs of returning to its bullish form as its price doubled in just five days of trading.
XHV’s price surged by up to 107% week-to-date to climb above $3.60 on March 11, its highest level in more than three months. Interestingly, the move upside followed a period of aggressive selloffs that saw XHV’s value dropping from nearly $20 in November 2021 to as low as $1.60 in early February 2022 — an approximately 90% decline.
Traders started returning to the Haven Protocol market against the prospects of two macroeconomic scenarios: U.S. President Joe Biden’s executive order that focuses on cryptocurrencies and hardline western sanctions on Russian oligarchs amid an escalating military standoff between Ukraine and Russia.
In the order titled “Ensuring Responsible Development of Digital Assets,” President Biden directed federal agencies to submit reports on cryptocurrencies and consider introducing new regulations for the sector.
Meanwhile, western powers decided to cut Russia out of the Swift global banking system while imposing targeted sanctions on some of the country’s wealthiest individuals.
Crypto investors priced in the effects of these two updates, deciding to bid up the prices of privacy-enabled digital assets that promise to secure financial transactions from regulatory watchdogs.
As a result, Monero (XMR), Kyber Network (KNC), Tornado Cash (TORN) and other privacy coins outperformed the crypto market massively this week.
Privacy coins have surged, with #Monero posting +26% gains over the last 24-hours to lead the top-100.
During times of unprecedented censorship in the crypto world, no wonder that the price of privacy coins, like $XMR, is surging. #XMR
— Weiss Crypto (@WeissCrypto) March 9, 2022
Haven Protocol, a fork of the Monero blockchain that promotes itself as an “offshore bank,” appears to have rallied on similar sentiment.
The recent bout of buying in the Haven Protocol market may have also emerged owing to a multi-month technical support level.
Related: FBI director: Russia overestimates its ability to bypass US sanctions using crypto
XHV’s price rebounded after failing to close below its descending channel support on multiple attempts, as shown in the chart below.
Notably, the token’s last 90% drop towards the same price floor in 2021 led to a sharp upside retracement from around $2.50 in June to around $20 in November.
XHV’s price hints at undergoing a similar, extended upside recovery after its latest bounce. In doing so, the Haven Protocol token might retest the resistance trendline of its descending channel setup — around $10.
Conversely, a pullback risk declines below XHV’s previous support lines inside the $1.00–1.50 range.
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