XMR Futures Open Interest Spikes Amid Price Decline of Almost $100 Over Past 72 Hours — Are Traders Buying the Dip?

Monero Price Dips Nearly $100 as Futures Interest Climbs to Highest Level Since December

After an impressive surge from $165 to $420 over seven weeks, privacy-focused cryptocurrency Monero (XMR) has experienced a notable pullback, with prices dropping to approximately $325 on Kraken as of Wednesday.

The recent rally was largely fueled by optimism surrounding U.S. regulatory developments and the upcoming FCMP++ protocol upgrade, which aims to bolster Monero’s quantum resistance through enhanced forward secrecy.

Simultaneously, futures market activity has intensified, with open interest rising 20% in the last three days to 161,370 contracts — the most since December 20, according to Coingecko data. Typically, rising open interest alongside falling prices signals bearish sentiment, as traders may be increasing short positions.

Yet, Monero’s perpetual funding rates remain positive, indicating that longs are dominant and willing to pay premiums to maintain their leveraged positions. This suggests many traders view the price drop as a buying opportunity rather than a signal to exit.

The surge in futures interest combined with positive funding rates points to a “buy the dip” approach among traders expecting a quick rebound in XMR’s price.