Monero (XMR) Gains Bullish Momentum Amid Growing Whale Interest

▲ Monero (Monero, XMR) ©

Monero (XMR) has successfully rebounded from the $300 support level, raising expectations for further gains backed by whale activity and inflows into derivatives markets.

According to investment media outlet FXStreet on February 25 (local time), Monero rebounded 4% from the $300 level the previous day and continued its recovery with an additional 5% intraday gain on Wednesday. Analysts note that it is expanding its presence in the derivatives market despite the broader risk-off sentiment prevailing across the market.

Data from CoinGlass shows that XMR futures open interest reached $99 million, marking an increase of more than 6% over the past 24 hours. This indicates a rise in the notional value of outstanding contracts. The long-to-short ratio stood at 1.0354, giving a slight edge to long positions, while short liquidations over the past 24 hours totaled $91,640, surpassing long liquidations of $14,300. The price action is interpreted as reflecting a short squeeze, where buying pressure emerges as short positions are closed or covered, thereby tilting momentum to the upside. Data from CryptoQuant also indicates increased participation in the futures market by large wallet investors based on average order size.

Technically, the $300 level is considered a critical pivot point. Monero rebounded at $300, which corresponds to the 78.6% Fibonacci retracement level measured from the August 15 low of $231 last year to the January 14 high of $799 this year. The price has confirmed support at this level twice in February, raising the possibility of a double-bottom formation. However, a breakout above $370—the 61.8% retracement level that serves as the neckline—is seen as crucial.

For a sustained trend reversal, analysts say the price must rise above $375, where the 200-day exponential moving average (EMA) is located. Subsequent resistance levels are identified at the 50-day EMA of $389 and the 50% retracement level of $429. On the downside, the 50-day EMA is trending lower and approaching the 200-day EMA, meaning the possibility of a death cross cannot be ruled out. The Moving Average Convergence Divergence (MACD) indicator has crossed above its signal line, maintaining bullish momentum, while the Relative Strength Index (RSI) has recovered from oversold territory to reach 44.

A bearish scenario also remains possible. If the $300 level breaks down, the price could retest the $230 area, which marks the 100% Fibonacci retracement level and a previous bottom range.

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