Monero faces short-term selling pressure despite strong on-chain activity

• Monero (XMR) faces short-term selling pressure below key moving averages.
• On-chain activity remains strong despite exchange delistings.
• Support lies at $300 while the immediate resistance sits near $381.

After reaching an all-time high near $798 in January, Monero (XMR) cryptocurrency has experienced significant short-term volatility.

In the last month alone, XMR has retraced over 44% from its recent highs.

The coin is currently trading around $331, after modest gains over the past 24 hours, but still well below its peak.

Growing selling pressure

Recent price action shows that XMR is struggling below key moving averages, including the 50-day and 200-day exponential moving averages (EMA).

These levels are critical as they often guide the sentiment of market participants.

Selling pressure has been compounded by a decrease in futures open interest, which dropped around 11% in a single day.

The long-to-short ratio has also shifted in favour of short positions, indicating a prevailing bearish bias.

If Monero fails to hold above the psychological $315 level, it could open the door for further declines.

Technical analysts suggest that a break below $315 may trigger a deeper correction, potentially testing support near $300.

Despite this, the short-term weakness does not reflect a collapse in user interest.

Strong on-chain activity and adoption

Monero’s core network activity remains remarkably resilient.

Transaction volumes have stayed above pre-2022 levels, even as numerous exchanges have delisted the cryptocurrency.

This suggests that the demand for private transactions continues, independent of mainstream trading platforms.

Darknet marketplaces are increasingly favouring XMR as the payment method of choice.

Almost half of the newly launched privacy-focused markets now operate exclusively on Monero, underscoring its growing adoption in niche sectors.

Even though ransomware operators still prefer Bitcoin (BTC)  due to its liquidity, Monero continues to hold a strong position among users who value privacy.

Network-level observations also show that a small percentage of Monero nodes behave differently from the standard protocol.

These anomalies do not compromise the cryptocurrency’s privacy features but indicate subtle variations in how real-world networks function.

Overall, these factors demonstrate that Monero maintains a strong and active user base, even in the face of regulatory and exchange restrictions.

Monero price forecast

Monero is balancing between short-term price weakness and long-term network resilience.

The immediate support lies around $300. Holding this level is crucial for preventing further downside.

If $300 fails to hold, the next major support is between $290 and $231.

On the upside, Monero needs to reclaim levels above $381 to ease selling pressure and potentially resume its bullish trend.

Short-term traders should be cautious, as momentum indicators suggest room for continued volatility.

Meanwhile, long-term holders can take confidence from the sustained network activity and growing adoption in privacy-focused markets.