Monero Attempts Recovery After Monthlong Collapse; Death Cross Risk Looms

Monero has faced intense selling pressure over the past month, with the price collapsing nearly 60% in just four weeks. The sharp decline erased weeks of gains and pushed XMR into a sustained downtrend. This move signals quickly weakening investor confidence, as long-term holders and short-term traders alike reduce exposure amid broader market stress.

Derivatives data points to a clear trader exodus from Monero. Open interest has dropped sharply, falling from roughly $279 million in mid-January to about $118 million — a 57% decline that reflects reduced participation across futures markets and fading speculative interest.

Two factors largely explain this contraction: profit-taking followed earlier price spikes, and bearish market conditions that eroded confidence, thinning liquidity and prompting position exits. Lower engagement often weakens price support, increasing sensitivity to further selling pressure and volatility.

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