- October 3, 2024
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
Kraken Exchange’s decision to delist Monero (XMR) sent shockwaves across the cryptocurrency space. Trading and deposits for Monero in the European Economic Area (EEA) will be shut off before the end of October, 2024. Increasing regulatory scrutiny was cited as a reason for the move. The pressure has dragged the coin’s price below $150, showing that privacy-focused cryptocurrencies still face a lot of setbacks.
The Price Decline
Monero has also not been spared in the rollercoaster ride in terms of price. Days before the Kraken delisting announcement, it was hovering around $158, failing to maintain its footing amidst a broader bearish trend that has eaten up much of the cryptocurrencies’ value.
The news of the delisting has just aggravated the decline: XMR plummeted over 10% shortly after the announcement, with the crypto trading at about $144.50. Analysts are now looking to see if it can stay above the important support levels at $150 and $155, as the higher drops test even lower levels around $135.
Even with this, there are technical indicators that show that Monero might recover. The Moving Average Convergence Divergence shows a tiny bearish trend while at the same time the Relative Strength Index indicated that there is still room for upward movement in case there is increased buying pressure. The overall sentiment remains cautious due to the augmenting selling pressure.
Regulatory Concerns
The delisting of Monero from Kraken is not an isolated incident. It symbolizes a bigger trend of increased regulatory pressure on private coins. Authorities become worried about the potential use of private coins like Monero for illicit purposes, hence forcing exchanges to reevaluate their support for such assets.
Many challenges come with this new regulatory environment as Monero seeks to balance its commitment to privacy with the real need for compliance.
Monero’s unique features, which include stealth addresses and ring signatures, make it one of the favorite choices among users who put premium on anonymity in all their transactions. But that same anonymity has by extension raised the ire of regulators who fear that it can be used as a means of possibly “getting away with,” other things.
As exchanges like Kraken distance themselves from privacy coins, Monero may find itself at a crossroads: continue advocating for user privacy or adapt to an increasingly regulated environment.
Future Outlook
Anticipating Monero’s price path, market observers provide differing forecasts. According to some estimates, Monero may recover higher price points by mid-2026 if regulatory obstacles can be negotiated and adoption keeps rising, hence perhaps attaining its all-time high of roughly $518. Others remain dubious, suggesting XMR might find it difficult to retain its value without notable changes in market sentiment or regulatory clarification.
Featured image from Vecteezy, chart from TradingView
