Monero’s anonymity is technically achieved through a combination of ring signatures, stealth addresses, RingCT protocol for hiding amounts, and Dandelion++ to mask the IP address. However, there are ways that analysts can attempt to track transactions, such as analyzing user behavior, exploiting vulnerabilities in apps, or matching with external data. A case in Japan showed that, with the right resources, law enforcement officials can track transactions by analyzing timing patterns, deploying watchdog nodes, and matching with exchange data.
That said, Monero remains one of the most private cryptocurrencies, and successful tracking cases are usually due to user error or specific usage patterns. Absolute anonymity is virtually impossible to achieve due to vulnerabilities at the technical, user, and infrastructure levels. Even with good technical protection, deanonymization is possible due to address reuse, interaction with centralized services, or predictable transaction patterns. Therefore, it makes more sense to talk about the degree of privacy and the resources required for potential deanonymization.