<div id="readability-page-1" class="page"><p>Monero [XMR] had a parabolic rally in January, and just as it set a new all-time high at $798, Bitcoin [BTC] ran out of bullish momentum. The subsequent BTC sell-off led to a steep XMR correction of 63.7% in just 22 days.</p><p>The social media engagement on the privacy coin was remarkable, but AMBCrypto pointed out that this was a sign of “obvious crowd FOMO” and highlighted overheating alarms that the spot volume bubble map showed.</p><p>These warnings were followed by a steep correction just days later. The failure to defend the long-term trendline support meant that XMR was likely headed to $266 next. On Friday, the 6th of February, XMR reached a low of $276.</p><h2><strong>Monero bears reclaim key retracement levels</strong></h2><div id="attachment_568616"><p><img src="https://imageproxy.pbkrs.com/https://ambcrypto.com/wp-content/uploads/2026/02/Monero-1-day-Chart-1.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="1940" height="1035" original-src="https://imageproxy.pbkrs.com/https://ambcrypto.com/wp-content/uploads/2026/02/Monero-1-day-Chart-1.png"/></p><p id="caption-attachment-568616">Source: XMR/USDT on TradingView</p></div><p>The A/D indicator made new multi-month lows to underline the depth of the selling pressure in the past three weeks. The steep correction and high volume explained the A/D indicator’s movement and showed that recovery was highly unlikely anytime soon.</p><p>The 20 and 50-day moving averages formed a bearish crossover after 4 months of a bullish trend. The DMI also signaled a strong downtrend in progress.</p><p>These were pretty obvious just looking at the recent drawdown. <span>The bulls’ last spark of hope lay at $352, the 78.6% Fibonacci retracement level from the rally between $230 and $799.</span></p><p><span>Levels that once acted as support a few weeks ago have now flipped into firm supply zones. Selling pressure proved so strong that the $352 retest failed to produce any meaningful reaction.</span></p><h2><strong>What should traders expect?</strong></h2><p>Traders and investors should be prepared for the downtrend to continue.</p><p>It is possible that Monero would halt at certain price levels and form a range at moments when Bitcoin [BTC] and major altcoins see a price bounce in their longer-term downtrends.</p><h2><strong>XMR faces bearish retest zones</strong></h2><div id="attachment_568625"><p><img src="https://imageproxy.pbkrs.com/https://ambcrypto.com/wp-content/uploads/2026/02/Monero-Liquidation-Heatmap-1.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="1376" height="753" original-src="https://imageproxy.pbkrs.com/https://ambcrypto.com/wp-content/uploads/2026/02/Monero-Liquidation-Heatmap-1.png"/></p><p id="caption-attachment-568625">Source: CoinGlass</p></div><p>The run is clearly over. A Bitcoin bounce could take XMR higher. The liquidation heatmap showed that the $390-$420 and $500 levels were the next magnetic zones to watch. A retest of these areas could yield another bearish move.</p><hr/><h2>Final Thoughts</h2><ul><li><em>Monero has had its parabolic rally and subsequent blow-off top, and has retraced 63% in just over three weeks.</em></li><li><em>Swing traders and investors would have to be a special kind of brave to buy here, but their portfolios might not thank them for it. Catching knives can be exciting, but also needlessly risky.</em></li></ul><p><strong>Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.</strong></p></div>

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<p>Monero (XMR) experienced a significant 63.7% correction following a parabolic rally that peaked at $798. The decline was triggered by a Bitcoin sell-off, leading to a bearish trend as key support levels failed. The A/D indicator showed strong selling pressure, indicating recovery is unlikely. Traders should prepare for continued downtrends, with potential retest zones at $390-$420 and $500. The market sentiment suggests caution, as buying now may be risky for swing traders and investors.</p>

- Monero [XMR] experienced a significant rally in January, reaching a high of $798 before a subsequent 63.7% correction following a Bitcoin [BTC] sell-off.  
- The market signals indicated a strong downtrend, with important support levels failing and bears reclaiming key retracement levels, while selling pressure persisted.  
- Traders should brace for continued decline with potential price stops at specific zones; buying now is deemed risky amid prevailing market conditions.

Monero falls from FOMO to 63% freefall – What’s next for XMR?