 ▲ Monero (XMR) / ChatGPT-generated image |
Monero (XMR) has suffered a historic collapse of nearly 60% within a single month, sharply cooling investor sentiment as signs of capital exiting the market accelerate, including open interest being cut in half.
According to cryptocurrency-focused media outlet BeInCrypto on February 8 (local time), Monero’s price has plunged by about 60% over the past four weeks, erasing all prior gains and entering a long-term bearish phase. Amid widespread market stress, both long-term holders and short-term traders have simultaneously reduced exposure, with multiple indicators signaling a rapid deterioration in investor confidence.
Data from the derivatives market vividly illustrates a mass trader exit. Monero’s open interest has fallen roughly 57%, from about $279 million in mid-January to around $118 million recently. As profit-taking from previous rallies coincides with prolonged bearish sentiment, market liquidity has thinned considerably, significantly weakening price support.
Despite reduced market participation, short-term momentum indicators are showing positive signs that selling pressure may be easing. The Money Flow Index (MFI) is forming a bullish divergence by making higher lows even as prices decline. This technical setup, which suggests diminishing selling strength, could foreshadow price stabilization or a short-term rebound.
Currently, Monero is attempting a gradual recovery around the $320 level. However, it remains below the $335 resistance zone, leaving a strong bullish confirmation lacking. Trapped in a downtrend that has persisted for about four weeks, upside potential remains limited, and even if $335 is breached, a major supply zone near $357 is likely to hinder recovery efforts. Without an influx of buying pressure or an improvement in market sentiment, prices are expected to continue moving sideways within a defined range for the time being.
Downside risks have not yet been resolved, and additional selling pressure could intensify depending on moving average trends. There is a possibility of a death cross forming, with the 200-day exponential moving average (EMA) crossing above the 50-day EMA, signaling the risk of entrenched long-term weakness. If this scenario materializes, prices could break below the $291 level and slide toward $265 or lower, further expanding losses.
*Disclaimer: This article is for investment reference only, and no responsibility is taken for any investment losses based on it. The content should be interpreted solely for informational purposes.*