"Overheating signals in Monero (XMR) futures are growing…watch for near-term volatility as leverage flows in"

An analysis said that, as Monero (XMR) prices rise, leveraged inflows into the futures market are increasing rapidly, with signals emerging that point to heightened near-term volatility or the potential for a pullback.

On the 13th, analyst Woo Min-kyu cited CryptoQuant’s QuickTake report, referencing the Monero Futures Volume Bubble Map, and said that “overheated bubbles have been forming repeatedly during the recent price upswing.” He explained that “a key feature is that these bubbles appear not near the lows, but after prices have already risen substantially.”

The analyst said, “The current rally is being driven more by increased leveraged participation in the futures market than by gradual spot buying,” adding, “A similar pattern appeared in past Monero cycles; while further gains were possible in the short term, it often led to increased volatility or a short-term correction afterward.”

He continued, “While the medium- to long-term trend itself is still intact, leverage is accumulating near the top, making the risk profile increasingly asymmetric,” and added that “rather than a clean, trend-driven rise, it is necessary to prepare for a phase of heightened near-term volatility.”