Monero Price Drops Nearly $100 as Futures Open Interest Hits Multi-Month High

Monero (XMR), the privacy-centric cryptocurrency, has faced a sharp correction after a strong rally, with futures activity reaching its highest point since December.

Data from Kraken shows Monero’s price fell to around $325 on Wednesday, down from a peak near $420 on Monday. The recent rally—from $165 to $420 over seven weeks—was driven by positive sentiment around expected U.S. regulatory clarity and the imminent FCMP++ upgrade designed to improve Monero’s quantum resistance via forward secrecy enhancements.

Meanwhile, the futures market saw a notable increase in open interest, climbing 20% in just three days to 161,370 XMR contracts—the largest since December 20, according to Coingecko. Usually, rising open interest amid falling prices points to bearish positioning, as traders might be shorting the asset.

However, Monero’s perpetual funding rates remain positive, which typically indicates a dominance of bullish long positions. Funding rates are payments exchanged between long and short traders every eight hours, and positive rates show longs are paying premiums, reflecting confidence in a price rebound.

This dynamic suggests traders are using the recent dip as a buying opportunity, increasing their exposure in anticipation of a potential recovery in XMR’s value.