Monero’s Dip Looks Temporary as On-Chain Metrics Flash Buy Signals
Privacy coin shakes off bearish pressure as key indicators suggest accumulation phase.
Network activity spikes while exchange reserves drop—classic bullish divergence pattern.
Meanwhile, Bitcoin maximalists still can’t explain why their ’digital gold’ trades like a tech stock.
XMR exchange inflow and outflow | Source: CoinGlass
Monero’s funding rate in the futures market has also jumped to its highest level since May 7. A positive funding rate in perpetual futures indicates that futures prices are trading above spot prices.
This scenario occurs when long holders pay a funding fee to short holders, signaling elevated demand for long positions.
Additional data shows that Monero’s open interest in the futures market is climbing. Open interest reached $54 million on Wednesday, up from $50 million on Tuesday. That’s nearly double this month’s low of $27.8 million, pointing to rising demand from derivatives traders.
Monero price technical analysis
The daily chart shows that Monero’s path to an all-time high stalled when it jumped to $420 this week. This decline happened because of profit-taking among investors who have benefited from the recent surge.
Despite the decline, XMR remains above the 50-day and 100-day exponential moving averages. It is also forming a potential hammer candlestick, characterized by a long lower wick and a small real body—a classic bullish reversal pattern.
As such, the coin may rebound and potentially retest its weekly high. A move back to that level WOULD imply a 20% gain from current prices.
