#SouthKoreaSeizedBTCLoss
Dramatic drop in the price of Monero leaves little room for optimism.$XMR
Given the magnitude of the decline, expectations for an immediate recovery are weakening. Such abrupt drops usually indicate that some whales that were holding the price above the $500 support are reducing exposure. These capitals frequently rotate towards assets with greater short-term performance potential.
In practical terms, XMR seems to have lost appeal for large portfolios, leaving price control mostly in the hands of the retail market. As often happens after vertical rises, the asset becomes a natural target for short positions. Investors betting on the decline found a favorable scenario given the evident overextension of the previous movement.
The opening of short positions intensified in anticipation of a deep correction, generating nervousness and accelerating profit-taking. This behavior explains why the drop has been as pronounced and swift as the rally that preceded it.
While a technical recovery cannot be ruled out, the key point is the price's ability to hold above $500. If in the coming hours XMR fails to recover and consolidate that level, it is likely that new investors will choose to abandon the position due to exhaustion.
Other coins in the privacy sector also show declines this Sunday, although none currently exhibit a drop as marked as that of XMR.