Monero Price Drops Nearly $100 as Futures Open Interest Surges
Monero (XMR) has experienced a significant price decline, dropping from $420 to $325 over the past three days. This follows a seven-week surge from $165 to $420, influenced by a favorable U.S. regulatory outlook and an upcoming FCMP++ upgrade aimed at improving quantum resistance.
Key Points
- Open positions in XMR futures have reached 161.37K, the highest since December 20, indicating a 20% increase in open interest over three days.
- The rise in open interest during a price drop typically suggests bearish sentiment, with traders shorting in expectation of further declines.
- Despite this, positive perpetual funding rates indicate a preference for long positions, suggesting many traders are adopting a "buy the dip" strategy, anticipating a price recovery.
