Monero Faces Sharp Price Decline as Futures Open Interest Hits Multi-Month High
Monero (XMR), the leading privacy-centric cryptocurrency, has experienced a steep price correction over the past three days, sliding from a recent peak of $420 to around $325 on Kraken as of Wednesday.
This comes after a rapid rally from $165 that spanned nearly two months, driven by positive developments such as improved regulatory sentiment in the U.S. and the forthcoming FCMP++ upgrade, which promises to enhance Monero’s defenses against future quantum threats by introducing forward secrecy.
During the downturn, futures market activity surged, with open interest climbing 20% to 161,370 contracts—the highest level since late December, according to Coingecko data. Typically, rising open interest amid falling prices can indicate traders increasing short positions, signaling bearish expectations.
However, Monero’s perpetual funding rates remain positive, revealing that bullish sentiment still dominates. Positive funding rates mean long traders are paying premiums to hold leveraged positions, suggesting that many are seizing the dip as a buying opportunity.
The combination of increased futures activity and sustained positive funding rates suggests that traders are betting on a swift price recovery rather than a prolonged downturn for Monero.
