Privacy coin XMR (Monero) has suddenly gained momentum recently, rising by about 13% over the past 24 hours and becoming one of the most eye-catching coins in the market.

Behind this surge, one key reason is that long positions have clearly increased in the perpetual futures market. In simple terms, there are more people bullish on XMR—and they’re willing to put more capital into going long.

Data shows that XMR’s funding rate has risen to 0.1683%, the highest level since September 4. With the funding rate staying positive, it suggests that bullish sentiment is currently relatively strong. Meanwhile, XMR’s perpetual futures open interest (OI) has increased by 18%, reaching $305 million—equivalent to about $54.9 million in new capital entering the futures market over the past 24 hours.

🔥 Bulls are fierce, but be careful of a sudden pullback

Although a large amount of capital has flowed in and pushed XMR higher, the market also shows a signal worth paying attention to—there is a clearly noticeable liquidity zone below.

So-called liquidity can be simply understood as locations in the market where there may be many stop-loss orders and liquidation orders. When price rises rapidly and there is a large amount of liquidity gathered below, the price sometimes pulls back to clear out those “positions.”

Right now, liquidity above XMR is not very high. Instead, there is a relatively noticeable concentration area below, so in the short term we can’t rule out the possibility of a pullback after a price spike.

📉 The CMF is starting to weaken— the market is not fully bullish

The Money Flow indicator (CMF) is still in positive territory, around 0.03, which suggests that overall money inflow remains present.

But the issue is that CMF is trending downward, which means there has been some profit-taking selling in the market over the past day. In other words, although bulls still hold an advantage, some funds have already started choosing to take profit.

Also, the Aroon indicator shows that the bulls are still stronger for now, but the Aroon Down reading has reached 64.29%, indicating that bearish strength should not be ignored.

🧐 Beginners—remember this key point

In short, this leg of XMR’s rise is supported by both capital and contract data. Bulls are currently in the lead, but the upside has already been fairly large, so there is also a risk of a short-term pullback.

If capital continues to flow in and the price can hold steady, then the uptrend may continue. But if capital begins to retreat and the price breaks below key support, be careful about a pullback at the highs.

One sentence: Bulls are very strong, but the bigger the surge, the more you need to guard against a “spike-and-retrace.”