Monero price has suffered a sharp reversal this week, falling for three consecutive days and erasing some of its recent gains. Monero ( XMR ) token dropped to a low of $320.80 on Wednesday, down more than 23% from its highest level this year. It then pared back some losses and was trading near $350 at press time. No specific news appeared to trigger the XMR price drop. The decline was likely driven by profit-taking, as the token had surged over 125% from its yearly low. It’s common for rallying assets to take a breather after extended moves higher. On-chain data suggests Monero may bounce back. According to CoinGlass, investors are still moving tokens from exchanges into self-custody wallets. XMR saw a net outflow of $1.28 million on Wednesday, following outflows of $2.4 million and $1.64 million on the previous two days. XMR exchange inflow and outflow | Source: CoinGlass Monero’s funding rate in the futures market has also jumped to its highest level since May 7. A positive funding rate in perpetual futures indicates that futures prices are trading above spot prices. You might also like: Ethereum price stalls as whales sell $530M coins: can it surge to $4,000? This scenario occurs when long holders pay a funding fee to short holders, signaling elevated demand for long positions. Additional data shows that Monero’s open interest in the futures market is climbing. Open interest reached $54 million on Wednesday, up from $50 million on Tuesday. That’s nearly double this month’s low of $27.8 million, pointing to rising demand from derivatives traders. Monero price technical analysis XMR price chart | Source: crypto.news The daily chart shows that Monero’s path to an all-time high stalled when it jumped to $420 this week. This decline happened because of profit-taking among investors who have benefited from the recent surge. Despite the decline, XMR remains above the 50-day and 100-day exponential moving averages. It is also forming a potential hammer candlestick, characterized by a long lower wick and a small real body—a classic bullish reversal pattern. As such, the coin may rebound and potentially retest its weekly high. A move back to that level would imply a 20% gain from current prices. You might also like: Ethereum price stalls as whales sell $530M coins: can it surge to $4,000?
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