Convergence

Wednesday

Monero

Divergence

Monero <a href="https://yellow.com/asset/xmr">(XMR)</a> has dropped approximately 38% from its <a href="https://yellow.com/news/monero-hits-dollar610-all-time-high-as-peter-brandt-sees-silver-style-breakout-pattern">recent peak of $800</a> reached last Wednesday to trade below $500 during the American session on Wednesday, as broader cryptocurrency market weakness and declining derivatives activity signal reduced retail engagement with the privacy-focused token. 
<h2 id="what-happened-privacy-token-slides-amid-market-selloff">What Happened: Privacy Token Slides Amid Market Selloff</h2> 
The decline mirrors a wider retreat across major cryptocurrencies. 
Bitcoin <a href="https://yellow.com/asset/btc">(BTC)</a> fell from $97,000 last week to around $89,000 on Wednesday. Ethereum <a href="https://yellow.com/asset/eth">(ETH)</a>, the leading altcoin by market capitalization, extended its slide below $3,000 but held above $2,900. 
Derivatives data <a href="https://www.fxstreet.com/cryptocurrencies/news/monero-price-forecast-xmr-risks-extending-correction-as-market-structure-weakens-202601211451">shows</a> futures Open Interest for Monero at approximately $218 million on Wednesday, down sharply from roughly $272 million on Tuesday. 
The pullback in outstanding futures contracts suggests traders are reducing risk exposure as the token tests critical support levels. 
Also Read: <a href="https://yellow.com/news/the-one-signal-everyone-missed-before-bitcoin-crashed-and-wiped-out-nearly-dollar1b">The One Signal Everyone Missed Before Bitcoin Crashed And Wiped Out Nearly $1B</a> 
<h2 id="why-it-matters-technical-breakdown">Why It Matters: Technical Breakdown</h2> 
Technical indicators point to mounting downside pressure. 
The <a href="https://yellow.com/learn/the-relative-strength-index-rsi-what-it-is-and-how-it-works">Relative Strength Index</a> has fallen below the midline on the daily chart, emphasizing increasing sell-side momentum. The Moving Average Convergence Divergence indicator remains below its signal line, aligning with the bearish structure. 
Should selling persist, XMR may retest the 50-day Exponential Moving Average at $484 or potentially the 100-day EMA at $432. 
A sustained hold above the 50-day EMA could restore confidence in a <a href="https://yellow.com/news/monero-smashes-past-dollar598-to-hit-first-ever-dollar10b-market-cap">recovery toward $500</a>, with resistance levels at $600, $700 and $800 marking key upside milestones. 
Read Next: <a href="https://yellow.com/news/the-economist-who-sounded-the-alarm-before-2008-now-warns-of-a-far-bigger-crisis">The Economist Who Sounded The Alarm Before 2008 Now Warns Of A Far Bigger Crisis</a>

Monero Plunges 38% From $800 Peak While Derivatives Activity Signals Retail Retreat

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