Monero traders are riding a wave of volatility this week, with the cryptocurrency’s futures open interest surging even as its price tumbled. Over the past three days, XMR has seen its value slide from a high of $420 to $325 on the Kraken exchange, a drop of nearly $100. This sharp sell-off comes on the heels of an impressive seven-week run that took XMR from $165 to its recent peak, fueled by optimism around a favorable U.S. regulatory landscape and the upcoming FCMP++ upgrade, which promises to bolster Monero’s quantum resistance.
A Tale of Two Markets
Yet, the falling price hasn’t deterred traders. Quite the opposite. The futures market has come alive, with the number of open positions skyrocketing to 161.37K XMR, marking the highest level since December 2024, according to Coingecko. This increase represents a 20% jump over just three days—a significant uptick that suggests a heightened interest in Monero despite the price drop. As explored in our recent coverage of Solana futures open interest nearing an all-time high, this trend of rising open interest amid price fluctuations is not unique to Monero.
Typically, such a rise in open interest amid a price decline signals bearish sentiment, with traders betting on further falls. But that’s not the full story here. Monero’s perpetual funding rates remain positive—a crucial detail indicating that many traders are actually betting on a rebound. These funding rates, applied every eight hours, reflect the cost of maintaining leveraged futures positions, and their positivity suggests a predominance of long bets. In simple terms, there’s a strong “buy the dip” mentality in the air.
Navigating the Crypto Waters
According to crypto analyst Jordan Linton, “The positive funding rates are an intriguing signal amid this price decline. It suggests that the market isn’t entirely bearish. Instead, there’s a segment of traders who see this dip as a buying opportunity.” His words highlight a nuanced market sentiment that goes beyond the surface-level numbers.
The backdrop to this trading activity includes Monero’s anticipated FCMP++ upgrade, which aims to enhance the coin’s security features by providing forward secrecy—a big draw for privacy enthusiasts. Additionally, recent whispers of a U.S. regulatory environment that seems to be warming up to privacy coins have further spurred interest in XMR.
But here’s another twist: even as Monero traders jostle in the futures market, the broader crypto landscape is sending mixed signals. Bitcoin, the bellwether of the crypto world, has taken a breather after its own bull run, leaving analysts pondering whether this is a temporary reprieve or the start of a more sustained correction. Similarly, Ethereum bulls are showing interest as traders’ confidence in ETH’s $1.8K level improves, indicating a complex interplay of market dynamics across different cryptocurrencies.
The Road Ahead
So, what lies ahead for Monero? The coming weeks will be crucial. Traders will be watching how the FCMP++ upgrade unfolds and whether the regulatory optimism holds. These elements could either fortify or falter the bullish sentiment currently reflected in the futures market.
Yet, as with all things crypto, uncertainty remains an ever-present companion. The volatile nature of the market means that today’s trends could easily pivot in unforeseen directions. As Linton cautiously notes, “While the current sentiment is bullish, it’s important for traders to remain vigilant. Market conditions can change rapidly, and what seems like a clear opportunity now might look different in a few weeks.”
In the end, Monero’s latest price dip and the subsequent market reaction highlight the complex tapestry of factors influencing cryptocurrency prices. From technical upgrades to regulatory shifts and trader sentiment, each thread weaves into the larger narrative of XMR’s market journey. As traders navigate these choppy waters, the only certainty is that the crypto market will continue to surprise, challenge, and engage those who dare to participate.
Source
This article is based on: Are Monero Traders Buying The Dip? XMR Futures Open Interest Surges as Price Falls By Nearly $100 in 3 Days
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
