Trader Doctor Profit has issued a warning regarding a potential large-scale liquidation event for Monero (XMR) futures. According to CoinGlass data, the current open interest for XMR stands at approximately $287 million. The analyst suggests that the high level of leverage in the market could trigger a significant sell-off, drawing parallels to a similar market structure observed in January.
Market data indicates that the current dollar-denominated open interest remains below the peaks of $305 million recorded in mid-January and the $320 million observed between late August and September. When adjusted for price, current open positions equal about 496,000 XMR, which is higher than the 400,000 XMR recorded during the January peak but lower than the levels seen in September.
The market environment differs from the January surge, which saw a 70% price increase over four days, followed by a 63% decline by February 6. The current price movement has been more gradual, rising from $378 in early August to $605 on October 20. Forced liquidations in XMR futures over the last 24 hours have remained relatively low, totaling about $338,000.
Technical analysis of the XMRUSDT perpetual chart on Binance reveals a potential double top pattern. The first peak reached $636 in late September, followed by a second peak at $628 on October 20. The neckline for this pattern is established at $514.13. A daily close below this level could project a target of $421.65, while a move above $636 would invalidate the current setup.
