Are Monero Investors Capitalizing on Price Dips?
XMR Futures Open Interest Rises While Costs Decline
The price of Monero (XMR) has significantly decreased from $420 to $325 over the last three days, following an impressive seven-week surge. This drop has occurred despite an increase in open interest for Monero futures, reaching its highest level since December.
On Monday, the largest privacy-focused coin by market cap peaked at $420, according to TradingView. The decline coincides with the anticipation of a favorable US regulatory landscape and a forthcoming FCMP++ upgrade that promises to enhance Monero’s quantum resistance.
Market Insights:
- Monero’s price reduction reflects a buy the dip sentiment among traders.
- Open interest in Futures appears to indicate a surge in trading activity, jumping to 161.37K XMR, a 20% increase over the last three days.
- The open interest rise amidst a price drop could signal a bearish outlook, yet the positive funding rates suggest long positions are still favored.
Future Expectations
This appears to indicate that many traders are adopting a strategy to purchase following the price dip, forecasting a potential swift recovery.
(Sources: TradingView, Coingecko, CoinDesk)
