Trader Doctor Profit Warns of Potential Major Liquidation of Monero

Trader Doctor Profit warns of a potential major liquidation of Monero (XMR) due to the high level of open interest, which, according to CoinGlass, is about $287 million. He links the current situation to January, when a similar increase ended with a sharp decline.

However, the data only partially supports him. In dollar terms, the current open interest is below the two previous peaks: about $305 million in mid-January and over $320 million between late August and September. In terms of coins, traders hold about 496,000 XMR – more than the January peak (approximately 400,000 XMR) but less than the September maximum. The dollar figure also grows automatically with the price.

The January dynamics were sharp: on January 10, XMR was worth about $459, by January 14 – almost $783, a 70% increase in four days. This caused a surge in open interest. The outcome was harsh: by February 6, the price fell to about $286 – 63% below the peak, in just 23 days. The structure of the current movement is different: the growth was gradual, from about $378 in early August to $605 on October 20.

Forced sales are still light: over the past 24 hours, CoinGlass recorded only about $338,000 in XMR futures liquidations. At the time of publication, XMR is trading at $578, down 4.3% for the day.

On the daily chart of the XMRUSDT pair on Binance, a potential double top is visible: the first around $636 at the end of September, the second around $628 on October 20. Both peaks were rejected with long upper shadows, and the volume at the second peak was lower – a sign of waning buyer confidence. The neckline is at $514.13 – this level held support on October 10; the pattern is not confirmed until there is a daily close below, about 11% below the current price. The depth of the pattern gives a target of around $421.65 – the former resistance of May and June, which is now expected to become support. A return above $636 will negate the scenario, but a break of the neckline with such a volume of open interest could trigger a cascade of long liquidations. For now, it is a plausible risk flag, not a confirmed signal.