Key takeaways
- XMR is trading above $380 on Friday, following a recovery of more than 3% from the 200-day EMA the previous day.
- Positive derivatives data could push XMR price above $400.
Monero (XMR) is trading at around $380 on Friday, showing a slight rebound after a 3% gain the previous day. Privacy Coin is steadily regaining demand in the derivatives market, with traders anticipating further upside amid a broader risk-on phase in the market.
Monero derivatives indicate strong hash sentiment
Monero has continued its recovery since the sell-off in early February, with retail demand for its derivatives increasing.
according to Coinglass dataOpen interest (OI) for XMR futures rose to $139.39 million, compared to $109.94 million on February 7, reflecting renewed investor confidence.
Furthermore, the OI weighted funding ratio remains positive at 0.0093%, indicating a continued preference for holding long positions at a premium.
Positive derivatives data indicates that buyers are starting to enter the Monero market. This could push the price of XMR higher in the near to medium term.
Technical Outlook: Can Monero price rise to $400?
The 4-hour chart of XMR/USD is bearish and active, but the structure may turn higher if Monero continues its rally.
Currently, XMR is holding above the 50-day Exponential Moving Average (EMA) at $351 and the 200-day EMA at $364.
The 4-hour chart is showing a rising channel pattern, which indicates a constructive market structure. The Relative Strength Index (RSI) at 61 and a positive Moving Average Convergence Divergence (MACD) above the signal line support continued bullish momentum.
On the upside, immediate resistance lies at $400, matching the Incentive Liquidity (ILQ) created on February 4. A break above this level could push Monero towards the 50% retracement level at $470, above the 4-hour TLQ level.
However, if the bears regain control, support will be found at the 200-day moving average at $364, followed by the 50-day moving average at $351.
A deeper pullback below the rising support trend line at $330 would signal a more significant shift in the current constructive outlook.
