Monero Futures See Rising Open Interest Despite Price Falling by Nearly $100 in Three Days—Are Traders Capitalizing on the Dip?

Monero’s Price Retreat Spurs Futures Activity Amid Optimism for a Rebound

Monero (XMR), the top privacy-focused cryptocurrency, has seen a notable price decline over the past three days, dropping from a high of $420 on Monday to about $325 on Kraken by Wednesday.

This pullback follows an impressive rally over seven weeks, where XMR soared from $165 to $420. The surge was fueled by hopeful U.S. regulatory developments and anticipation of the FCMP++ upgrade, designed to boost Monero’s quantum resistance with enhanced forward secrecy features.

Despite the price drop, futures market interest has intensified, with open interest increasing 20% to 161,370 contracts—the largest since December 20, as reported by Coingecko. Usually, a rise in open interest during a price decline might hint at growing bearish bets, with traders shorting the asset.

However, Monero’s perpetual futures funding rates remain positive, signaling that long positions still hold sway. Positive funding means traders holding long leveraged positions are paying premiums, suggesting confidence in a rebound.

The data points toward a “buy the dip” mentality among traders who appear ready to capitalize on the recent price weakness, betting on Monero’s price recovery in the near term.