Monero is pulling back today after a strong run, and a lot of traders are trying to figure out whether this move is something to worry about, or simply the market cooling off.
Looking at the data, today’s drop looks much more like normal profit-taking than a sign of trouble.
Profit-Taking After an XMR Leverage-Fueled Rally
The XMR price jumped more than 23% last week, but most of that rise came from futures traders rather than spot buyers.
Open interest hit record levels, yet spot volume stayed flat. Whenever leverage drives a rally, the price becomes more vulnerable to sudden unwinds, and that’s exactly what happened.
In the last 24 hours, about $12 million in long positions were liquidated. Funding rates normalized, traders locked in profits, and the market reset. The chart reflects that cleanly.
None of this points to weak fundamentals; it’s simply what happens when too many leveraged positions pile up. If Spot CVD continues to trend negative, it would confirm that spot demand is still on the lighter side.
A Broader Market Cooldown Is Also Hitting Monero
It’s not just Monero under pressure today. The entire crypto market eased about 0.5% as Bitcoin stalled around $91,000. Privacy coins as a group slipped about 3.8%, and the XMR price actually held up better than most.
Traders rotated back into Bitcoin after the odds of near-term Fed rate cuts dipped from 87% to 84%. Bitcoin’s dominance ticked higher, the Fear & Greed Index dropped to 20/100, and the overall vibe shifted to short-term caution.
Privacy Coins Are Seeing Rotation, Not Rejection
Zcash and Dash led the sector’s losses, falling 4.4% and 7.3%. That rotation makes sense after XMR became the largest privacy coin again last week.
The privacy narrative hasn’t changed; what we’re seeing is simply traders redistributing profits after Monero’s strong 90-day performance (+54%).
On the technical side, the XMR price is now sitting right on the $412.49 Fibonacci support level. If it holds, the chart leans toward consolidation rather than a reversal.
What’s Next for XMR?
Monero’s decline today looks like a normal reset after a fast, futures-driven rally. MACD is still bullish, RSI is neutral around 61, and the broader trend remains intact.
With the XMR price still up more than 25% over the past month, the dip doesn’t signal weakness; it’s just the market taking a breather.