XMR Surpasses $700 to Hit New All-Time High, Futures Open Interest Rises to $291M

Monero (XMR) surged to a new all-time high of $700 on January 14, according to HTX market data. The privacy coin briefly topped that level before retreating to $698.1. It has gained 8.25% in the past 24 hours.

The coin's global open interest has also increased significantly. XMR futures open interest reached $291 million, up 150% from $116 million five days prior. This increase suggests a growing number of traders taking positions in the asset.

Privacy tokens are gaining attention as XMR's rally continues. The token has climbed into the top 20 cryptocurrencies by market capitalization, now ranked at #15 with a market cap of $12.2 billion.

The surge in XMR has prompted warnings from crypto analytics firm Santiment. It noted that rising FOMO surrounding the asset could be risky, with social dominance peaking on Sunday while development activity has declined.

XMR is currently facing resistance near the 78.6% Fibonacci extension level at $701. A breakout above this level could push the token toward $741. On the downside, the 23.6% Fib level near $600 could provide support.

Technical indicators like the RSI and Stochastic Oscillator are in overbought territory, suggesting heightened bullish momentum. Such conditions often lead to short-term corrections, as seen in XMR's recent price action.

DASH, another privacy token, also saw gains, rising about 30% over the past 24 hours. The token is up from a downtrend that began on November 5, with social mentions increasing by over 30%.

Why Did This Happen?

The surge in privacy tokens like XMR and DASH can be attributed to renewed investor interest in the space. Monero's rally has been supported by rising open interest and a positive funding rate for futures traders. This suggests that long positions are gaining strength.

CoinGlass data shows that XMR futures open interest rose to $92 million on Thursday, up from $82 million on December 27. This increase in open interest indicates new or additional capital entering the market, which could fuel further price gains.

Privacy-focused coins like Monero and Zcash have started the year on a strong footing, collectively gaining around 7.8% so far in January. This renewed interest suggests that investors are looking for alternative assets with strong privacy features.

How Did Markets React?

The broader crypto market also saw a positive reaction to the rally in privacy tokens. Bitcoin hit a near two-month high of $95,280 after corporate holder Strategy announced a $1.25 billion purchase of the crypto asset.

Strategy's purchase brought its total Bitcoin holdings to 687,410 coins, reinforcing its position as the largest corporate holder of the coin. The move came after mild U.S. inflation data, which provided additional support to crypto sentiment.

Ether also rose, gaining 7.3% to $3,322.50, while XRP surged 5%. The rise in Bitcoin and other major cryptocurrencies suggests that market sentiment has improved, with investors willing to take on more risk.

The Grayscale CoinDesk Crypto 5 ETF (GDLC) is also preparing to offer options trading on NYSE American. The ETF tracks a basket of Bitcoin, Ethereum, XRP, Solana, and Cardano. If approved, this move would mark one of the first multi-asset crypto ETFs in the U.S. to offer options trading.

What Are Analysts Watching Next?

Analysts are closely watching the technical indicators for XMR. A breakout above $701 could push the token toward $741, while a move below $600 could trigger a correction. The RSI and Stochastic Oscillator being in overbought territory suggest that a short-term pullback is possible.

Privacy tokens like DASH are also under scrutiny. The token faces resistance near $70, but its RSI and Stochastic Oscillator are approaching overbought levels, indicating strong bullish momentum.

South Korea's regulatory landscape could also impact the broader crypto market. The Digital Asset Exchange Alliance (DAXA) has pushed back against a proposed ownership cap for crypto exchanges, arguing that such measures could undermine the industry's growth and global competitiveness.

The proposed ownership cap is part of a broader regulatory push by the Financial Services Commission (FSC), which is also considering a 5% cap on corporate exposure to digital assets. While regulators frame these measures as consumer protection, industry stakeholders view them as signals of tightening oversight that could slow innovation.