Monero (XMR) surged 13% in the past 24 hours, leading gains in the privacy coin sector amid a broader market uptick. The rally was driven by a significant rise in long positions in the perpetual market, with the asset’s Funding Rate climbing to 0.1683%, its highest level since September 4.
Monero’s price surge was fueled by strong bullish momentum in the derivatives market. The Funding Rate, which measures the balance between long and short positions, turned sharply positive, indicating that traders are heavily favoring long bets.
Additionally, the Perpetual Open Interest (OI) jumped 18% to $305 million, reflecting an inflow of roughly $54.9 million in new capital over the past day. This capital inflow has been a key factor pushing prices higher.
However, despite the bullish momentum, on-chain data suggests a potential pullback. A one-month liquidation heatmap shows unfilled liquidity clusters below the current price, which often act as a magnet and could draw XMR lower.
While the top side has little to no liquidity clusters, the presence of these lower-level clusters poses a short-term risk. The Chaikin Money Flow (CMF) indicator remains positive but is declining, signaling that traders have begun distributing the asset.
The Aroon Indicator shows bulls are still in control, but the Aroon Down reading is elevated at 64.29%, weakening the overall bullish outlook. For a sustained rally, the Aroon Down would need to drop significantly while the Aroon Up remains strong.
