Monero’s Dramatic Plunge: Is It the End or Just a Dramatic Pause? 😱

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  • In a most unfortunate turn of events, XMR has plummeted by 15.15% in a mere 24 hours, erasing the joyful gains of May and testing the fragile support at $331. Oh, the irony!
  • Funding Rates, once a beacon of hope, have remained positive for a week, yet long-biased traders now find themselves teetering on the edge of liquidation below the ominous $331 mark.

Ah, Monero [XMR], once a shining star, now finds itself among the top decliners of the day, shedding 15.15% and dragging its monthly gain down to a meager 17%. How the mighty have fallen!

Analysis reveals a curious dichotomy: while bullish sentiment from spot and derivatives market investors begins to emerge like a timid flower in spring, the bearish pressure looms like a dark cloud, casting doubt on any immediate rally. Will the sun ever shine again?

Will this support save XMR from a fall?

According to the daily chart, XMR has descended to $331, a level that aligns with the 50% Fibonacci retracement. A number that sounds so promising, yet feels so precarious!

However, the likelihood of this level holding is as doubtful as a cat’s loyalty. Price action over the past three days has shattered previous support levels, erasing the market gains of the past fortnight. What a tragic tale!

If this level fails, XMR may plummet to a fair value gap (FVG) demand zone on the chart, where it could find enough buying pressure to bounce back. A glimmer of hope amidst despair!

Interestingly, AMBCrypto’s analysis suggests that the altcoin still possesses the potential to rally from this level. A phoenix rising from the ashes, perhaps?

Buyers are stepping up in the market

Despite the sell-off, some market participants appear to be buying the dip, as if they were bargain hunters at a yard sale. What a curious breed!

In the spot market, traders have accumulated a significant amount of XMR, totaling $1.59 million during this tumultuous period. A small fortune for some, a mere trifle for others!

These XMR tokens have also been whisked away into private wallets for long-term holding. A wise move, or a foolish gamble? Only time will tell!

If the volume of purchases continues to swell and the assets remain in private wallets, XMR could maintain its upward momentum. A rollercoaster ride of emotions!

A similar trend is observed in the derivatives market, where the Open Interest-Weighted Funding Rate continues to rise. A sign of optimism, or a trap for the unwary?

This metric, which has remained positive for over a week, indicates that most new and existing contracts come from retail investors betting on a rally. A gamble, indeed!

However, going long at this juncture could trigger notable long liquidations if stop losses are hit at current levels. A precarious dance on the edge of a cliff!

Technical indicators confirm a fall is likely

Technical indicators remain bearish, implying that a price drop is likely. The winds of change are not in our favor!

Analysis of the Bollinger Bands (BB) reveals that the altcoin has breached the mid-band, which typically acts as support. A breach that suggests bearish momentum is strong, and the asset could fall toward the lower band. How tragic!

Interestingly, the lower band coincides with the demand zone marked on XMR’s daily chart. Additionally, the Average Directional Index (ADX) has been trending upward and currently reads 67.22. A high ADX reading like this confirms a strong market trend. In context, as the ADX climbs and price falls, the downtrend is likely to continue. A tale as old as time!

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2025-05-28 16:12