The cryptocurrency focused on monero privacy (XMR) has seen a strong sale of prices in the last three days, with open positions in futures that increase to its highest level since December.
On Wednesday, the largest privacy currency for market capitalization fell to $ 325 in Kraken, after having reached its maximum point at $ 420 on Monday, according to Data Source TradingView.
The mass sale follows a seven -week meteoric increase from $ 165 to $ 420, allegedly led by a favorable regulatory perspective of the United States and an imminent FCMP ++ update, which will improve Monero’s quantum resistance by providing an advanced secret.
Also read: key reasons why Monero arises continues even when Bitcoin Bulls take a break
Open interest increases
The price decrease is characterized by a greater participation in the futures market, where the number of active or open contracts increased to 161.37k XMR, the highest account since December 20, according to the Coingcko data source. The OI has increased by 20% in the last three days.
An increase in open interest together with a price drop is generally interpreted as that it represents a bearish feeling, and more merchants take short positions in advance of a price decrease.
Financing rates are positive
That is not necessarily the case with XMR, since perpetual financing rates continue to be positive, indicating a bias for long positions. Financing rates, charged every eight hours, represent the cost of having leverage futures, with positive values that represent a domain of long bullish bets.
Therefore, the increase in XMR’s open interest probably represents a mentality of “buying the DIP”: merchants who take long positions in the price drop, anticipating a rapid recovery.
