Monero (XMR) has strengthened significantly in the past 24 hours, with its price rising by 15.24%. Along with the price increase, market trading volume has also increased, indicating that this surge is not a short-term fluctuation at a single point in time, but rather the result of active trading in both the spot and derivatives markets.
Data shows that XMR trading volume increased to $284.45 million, a 45.33% increase from the previous day; its market capitalization rose to $7.55 billion, a 15.03% increase. After mainstream crypto assets stabilized near key support levels, some funds began to shift to stronger-performing coins, thus bringing XMR back into the spotlight.
Net inflows into exchanges turned positive
As prices rebounded, XMR's exchange flows also changed. CoinGlass data shows that net XMR spot inflows turned positive, with approximately $3.17 million flowing into exchanges. This is the first time the metric has turned significantly positive after several consecutive trading days, contrasting with a relatively balanced flow for most of May.
Increased inflows into exchanges typically indicate two possibilities: first, some holders are preparing to realize profits after price increases; second, market trading activity has strengthened, with funds entering trading platforms awaiting further action. Therefore, this change reflects both increased activity and a rise in short-term selling pressure.
$418.77 becomes the short-term focus.
From a price structure perspective, buying pressure previously held support around $353.43, propelling XMR back up after its pullback. The price has now risen to around $410 and is once again approaching the key resistance level of $418.77.
The daily chart shows that the XMR has tested this level multiple times since rebounding from its consolidation range in April. The Relative Strength Index (RSI) has risen to 56.47, above its moving average of 50.20, indicating that buying power is increasing. However, the indicator has not yet entered a clearly overbought zone, and compared to the overheated state during the January rally, current leverage and sentiment are relatively mild.
If the price can effectively break above $418.77, the next upside target could be the $450 area, followed by a test of the $500 psychological level. If it fails to break through this level, XMR may continue to fluctuate within the current range.
Funding rates remain bullish.
Data from the derivatives market also supports this rebound. The OI weighted funding rate is currently maintaining a positive range of 0.0053%, indicating that bulls still dominate the perpetual contract market.
Positive funding rates typically indicate that traders are willing to pay costs to maintain bullish positions. Compared to the extreme readings earlier in May, current funding rates, while strong, have not yet reached overheated levels. This suggests that market leverage has not accumulated rapidly, and the risk of a large-scale long squeeze in the short term is relatively limited.
Overall, XMR's recent surge is supported by three factors: increased trading volume, positive funding rates, and the reconfirmation of key support levels. While increased net inflows into exchanges suggest some profit-taking, with the $353 level holding, the market will now focus on whether $418.77 can be broken.
