XMR shorts get squeezed out of $340 as Monero posts a 17% rebound 🧅

Monero [XMR] has rebounded 17% this week, snapping back after Bitcoin held $60,000 support and relieved pressure on the broader market. The privacy coin's move erased a portion of last week's sell-off tied to Bitcoin's losses, though the exact 2026 recovery pattern that preceded prior relief rallies is now being watched by traders.

Technical levels identified in the recovery point to the 200-day Simple Moving Average, currently around $391, as the next potential ceiling. Past monthly cycles cited in the analysis showed XMR rallies stalling at that same 200-day SMA in February, March, April and May, with sellers re-emerging each time. The most recent breakdown below the 200-day SMA in June was followed by a drop that bottomed near $300, a level that has repeatedly acted as a floor. A move toward the 200-day SMA would extend the rebound from 17% to roughly 33%, provided Bitcoin remains above $60,000 or pushes higher, with confirmation dependent on the Relative Strength Index climbing back above neutral.

A separate catalyst behind the squeeze was a large pool of leveraged short positions clustered around $340, visible on the liquidation heatmap and marked by bright yellow lines. Additional upside liquidity sat at $360 and above $380, with the $380-plus zone overlapping the 200-day SMA, reinforcing it as a likely resistance band. On the downside, leveraged longs between $290 and $300 were cited as potential support if the relief rally fades.

Beyond the charts, Monero published post-quantum era upgrade plans during the week, which contributed to bullish sentiment around the token. Despite these drivers, analysts noted that Bitcoin's directional move will likely set the ceiling on how far XMR's recovery can extend, with $391 flagged as the key resistance to watch for the current bounce.