Monero Price Hits $400 with 10% Weekly Gain
Monero (XMR) rose to $400 on Wednesday, gaining 10% this week. However, the derivatives market shows low confidence in this rally. Traders have built bearish positions, betting on a price drop. Technically, Monero aims to break a resistance trendline and rise from a symmetrical triangle pattern.
XMR Derivatives: Bearish Bets and Short Squeeze Risk
Data from CoinGlass shows XMR futures Open Interest increased nearly 5% to $56.24 million in 24 hours. This rise reflects both long and short positions growing. Traders often add risk during expected big moves.
The funding rate is negative at -0.0327%, meaning bearish traders pay premiums to keep short bets. These bets follow Monero’s price rejections at $471 and $441 on November 9 and 30.
Still, if Monero’s price keeps rising, bearish positions could face liquidation. The upcoming U.S. Federal Reserve meeting may boost market sentiment. The Fed is expected to cut interest rates by 25 basis points. This could cause a short squeeze and push Monero’s price higher.
Technical View: Potential Breakout from Triangle Pattern
Monero gained over 2% on Wednesday for the third day in a row. It targets the December 2 high at $428, near a resistance trendline from the November 9 and 30 highs.
The daily chart shows a symmetrical triangle pattern. This forms as a support trendline from November 21 and December 9 lows meets the resistance trendline.
If Monero passes $428, it may break out of the triangle and aim for the next target at $500 (R1 Pivot Point).
- The Relative Strength Index (RSI) is 53, showing room to gain before becoming overbought.
- The Moving Average Convergence Divergence (MACD) nears a bullish crossover, signaling weaker selling pressure.
On the downside, support levels include the 50-day EMA at $373 and S1 Pivot at $348. The 200-day EMA at $320 is the last major support level.
