Monero (XMR) Weakens as Correction Deepens: Analysts Warn of Further Drop Below $350

Markets 2025-11-20 09:31

Monero (XMR) is back under heavy pressure as the market-wide correction deepens, with the privacy-focused cryptocurrency dropping 8% in the past 24 hours to trade at $375.

This decline marks the fourth consecutive day of losses, erasing last week’s recovery and signaling a shift in sentiment as traders increasingly position for a deeper pullback.

Monero (XMR) Weakens as Correction Deepens: Analysts Warn of Further Drop Below 0

Monero (XMR)’s Selling Pressure Builds Further

Fresh derivatives data reflect rising bearish conviction. According to CoinGlass, Monero’s futures Open Interest has fallen over the last 24 hours, while short positions now account for more than 55% of all trades.

The drop in OI, now hovering around $78 million, suggests traders are withdrawing capital as fear of further downside builds.

Technical indicators support this shift. The RSI has slipped below the midline, showing weakening momentum, while the MACD indicator has flashed a fresh sell signal. Together, these point toward deteriorating buying interest and a growing risk that XMR may not hold its current support levels.

Support Threatened as Analysts Eye Breakdown Toward $350

Despite XMR maintaining an overall bullish structure on higher timeframes in recent months, the short-term outlook has flipped decisively bearish. The price is now testing key support zones, with the 50-day EMA at $348 emerging as the next major level to watch.

A close below $358, which aligns with the neckline of a double-top pattern, would confirm a bearish breakdown, potentially accelerating losses toward the low-$300 region.

Analysts warn that this scenario becomes more likely if market demand continues to weaken, particularly as retail traders rotate into alternative opportunities and risk sentiment remains fragile.

Still, not all indicators point south. Analysts note that as long as XMR holds above $373, there remains potential for an intraday rebound toward the $400–$410 resistance range. But with the price already slipping below that threshold, bulls may face an uphill battle to reassert control.

Privacy Narrative Remains Strong, but Momentum Falters

Despite the near-term weakness, Monero continues to benefit from growing interest in privacy-preserving technologies.

Recent upgrades, such as the Fluorine Fermi hard fork, have strengthened network security and improved resistance against surveillance-based threats. Long-term forecasts remain cautiously optimistic, with projections suggesting steady, though moderate, growth through 2030 and beyond.

For now, however, XMR remains vulnerable. Unless buyers step in to defend the $350–$360 support zone, analysts warn that the correction could deepen further before any meaningful recovery takes shape.

Cover image from ChatGPT, XMRUSD chart from Tradingview

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This content is for informational purposes only and does not constitute investment advice.

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