--- title: "Monero falls from FOMO to 63% freefall – What’s next for XMR?" description: "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 leve" type: "news" locale: "en" url: "https://longbridge.com/en/news/275213209.md" published_at: "2026-02-08T01:03:56.000Z" --- # Monero falls from FOMO to 63% freefall – What’s next for XMR? > 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. 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. 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. 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. ## **Monero bears reclaim key retracement levels** Source: XMR/USDT on TradingView 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. 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. These were pretty obvious just looking at the recent drawdown. The bulls’ last spark of hope lay at $352, the 78.6% Fibonacci retracement level from the rally between $230 and $799. 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. ## **What should traders expect?** Traders and investors should be prepared for the downtrend to continue. 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. ## **XMR faces bearish retest zones** Source: CoinGlass 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. * * * ## Final Thoughts - *Monero has had its parabolic rally and subsequent blow-off top, and has retraced 63% in just over three weeks.* - *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.* **Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.** ### Related Stocks - [HUT.US - Hut 8 Mining](https://longbridge.com/en/quote/HUT.US.md) - [RIOT.US - Riot Platforms](https://longbridge.com/en/quote/RIOT.US.md) - [COIN.US - Coinbase](https://longbridge.com/en/quote/COIN.US.md) - [BTC.US - Grayscale Bitcoin Mini Trust ETF](https://longbridge.com/en/quote/BTC.US.md) - [GBTC.US - Grayscale Bitcoin Trust BTC - ETF](https://longbridge.com/en/quote/GBTC.US.md) - [BTDR.US - Bitdeer Tech](https://longbridge.com/en/quote/BTDR.US.md) - [ABTC.US - American Bitcoin](https://longbridge.com/en/quote/ABTC.US.md) - [MARA.US - Mara](https://longbridge.com/en/quote/MARA.US.md) - [BCOR.US - Grayscale Bitcoin Adopters ETF](https://longbridge.com/en/quote/BCOR.US.md) - [FBTC.US - Fidelity Wise Origin Bitcoin Fund - ETF](https://longbridge.com/en/quote/FBTC.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | Steak 'n Shake credits Bitcoin strategy as driver of sales growth | Steak 'n Shake's Bitcoin experiment has evolved into a sales driver and a balance sheet strategy. | [Link](https://longbridge.com/en/news/276114408.md) | | One of the World’s Largest Bitcoin Miners Is Turning Gigawatts of Power Toward AI | Bitdeer, one of the largest Bitcoin miners, is expanding its operations to include AI infrastructure. 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