Monero (XMR) plummet below 400 USD: Selling pressure increases, the market awaits the next target

Monero (XMR) plummeted more than 9% on Wednesday, “wiping out” all the recovery gains made at the end of last week. The strong decline during the session sparked concern among the trading community, leading to an increase in bearish bets in the derivatives market. Technical signals also turned negative, collectively issuing sell warnings, indicating that XMR may face a deeper correction as selling pressure gradually overwhelms.

Market demand for Monero weakens

Monero is gradually losing its appeal to retail traders. According to data from CoinGlass, the open contract (OI) of the XMR futures contract has fallen by 3.14%, to 78.47 million USD in the past 24 hours, indicating that capital is being withdrawn amid a backdrop of a short-term correction overshadowing recovery expectations in the future.

XMR derivative data | Source: CoinGlassThe fear sentiment in the market is becoming more evident as the long/short ratio chart of XMR shows that short positions account for 55.48% of total transactions, pulling the ratio down to 0.8025. With this trend, Monero may continue to face increased selling pressure as bearish bets strengthen and the derivatives market weakens.

The long/short ratio of XMR | Source: CoinGlass## Monero can check important EMA lines

The daily drop has marked the fourth consecutive sell-off of Monero, wiping out all previous buying power. The relative strength index (RSI) on the daily chart has slid down to 48, breaking through the neutral level, signaling that the bulls have almost lost their strength and market sentiment is leaning entirely towards the bears.

Further supporting the bears, the MACD indicator emits a sell signal when the MACD line (green) crosses below the signal line (red), indicating that bearish momentum is returning strongly.

XMR/USDT Daily Chart | Source: TradingViewThe nearest support level for Monero is at the 50-day EMA line at 348 USD, followed by the 100-day EMA line at 326 USD and the 200-day EMA at 304 USD. From a technical perspective, if XMR closes below 358 USD — coinciding with the peak on July 14 — this will confirm the breakout of the double top (double top), as Coin Photon previously noted.

In the event that Monero bounces back, the first important resistance zone will be the peak on June 3 at 372 USD.

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