Monero [XMR] demonstrated strong bullish momentum, surging 11% to $516 at press time after reaching a local high of $520. According to reports from AMBCrypto, the altcoin's trading volume surged 206% over the same period, reflecting significant market activity and steady capital flows. The cryptocurrency initially failed to hold the $500 support level but subsequently reclaimed it with strengthened bullish pressure.
The primary catalyst for Monero's rally was the THORChain 3.2 upgrade that introduced native support for Monero swaps. As reported by AMBCrypto, this upgrade enables Monero swaps against Bitcoin [BTC], Ethereum [ETH], and stablecoins. The improvement has significantly enhanced XMR access and liquidity by allowing non-custodial swaps on cross-chain DEX platforms. This development has become particularly significant due to Monero's restrictions on centralized exchanges.
The derivatives market showed substantial growth with Open Interest surging 16% to $304 million and Derivatives Volume rising 319% to $325 million, according to CoinGlass data cited by AMBCrypto. The Long/Short Ratio climbed above 1.08, excluding Binance top traders, with the ratio at 1.08 implying that most traders were bullish and betting on further gains. This combination of rising Open Interest and volume indicates increased market participation and significant capital deployment into new positions.
Technical analysis reveals strong bullish momentum with Monero's Stochastic Momentum Index (SMI) extending its surge to 60, as reported by AMBCrypto. The Relative Strength Index (RSI) rose to 80, confirming buyers have total control of the market and entering the overbought zone. These indicators suggest that the prevailing trend is likely to continue, with potential targets of $527 and $546 in the short term if current demand holds. However, failure to sustain the upside move could result in XMR falling below $500 with $460 as key support level.
