The price of Monero (XMR) continues to lose momentum after the recent rally

Source: CritpoTendencia Original Title: Monero (XMR) Price Continues to Lose Momentum After Recent Rally Original Link: By mid-January, the price of Monero (XMR), the leading privacy-focused coin, experienced a strong surge. The rally was so significant that many began to speculate that the $1,000 per unit barrier was closer than expected. However, the correction came quickly, and now the token is undergoing an intense liquidation phase.

According to market data, XMR threatens to retreat to the level before the recent bullish trend started. From the $798 reached on January 14, the price has fallen by 41%. At the time of writing (Sunday, GMT 15:30), the token is down 6.8% in 24 hours and 20% over the past week.

The current price hovers around $471 per unit, meaning it is only 7% away from completely erasing the rally gains. This scenario is especially challenging for investors who entered when the price was above $600.

It is worth recalling that on January 17, XMR had already corrected down to $558, just days after reaching recent highs near $800. After that retracement, the price recovered strongly to $655, leading many to interpret the movement as a rebound with potential for further upside, fueling expectations of a move toward $1,000.

Spectacular Drop in Monero Price Leaves Little Room for Optimism

Given the magnitude of the retracement, expectations for an immediate recovery weaken. Such sharp declines often indicate that some whales holding the price above the $500 support are reducing their exposure. These capital flows frequently rotate into assets with higher short-term performance potential.

Practically speaking, XMR seems to have lost appeal for large wallets, leaving the price largely in the hands of retail traders. As is common after vertical rises, the asset becomes a natural target for short positions. Investors betting on a decline found a favorable scenario amid the evident overextension of the previous move.

The opening of short positions intensified amid expectations of a deep correction, generating nervousness and accelerating profit-taking. This behavior explains why the decline has been as sharp and rapid as the rally that preceded it.

While a technical recovery cannot be ruled out, the key point depends on the price’s ability to stay above $500. If in the coming hours XMR fails to recover and consolidate that level, it is likely that new investors will abandon their positions due to exhaustion.

Other privacy sector coins also show declines this Sunday, although none currently exhibit a drop as pronounced as XMR’s.