The mainstream adoption of web3 protocols and digital assets, which has been facilitated by increased regulations, has significantly impacted privacy tokens led by Monero (XMR).
Key Notes
- Monero price dropped over 8 percent in the past 24 hours to trade below crucial support levels.
- Kraken exchange announced that users should withdraw their XMR coins before the end of this year.
Amid the crypto correction fueled by the rising crisis in the Middle East, Monero (XMR), a veteran crypto project focused primarily on user privacy and security protection, dropped over 8 percent in the last 24 hours to trade about $142.22 on Wednesday, October 2, during the early New York session. As a result, the mid-cap altcoin, with a fully diluted valuation of about $2.6 billion and a daily average traded volume of around $98 million, dropped below crucial support levels.
In the weekly time frame, the XMR price has consistently closed below the 200 Moving Average (MA) year-to-date. The altcoin has suffered macro bearish sentiment, after last year’s death cross between the 50 and 200 weekly MAs.
Furthermore, XMR price faced significant resistance around $178 since July 2022, despite establishing a robust support level of around $100. In the past two months, Monero price against the US dollar formed a potential reversal pattern, characterized by a double top and a bearish divergence on the weekly Relative Strength Index (RSI).
From a technical standpoint, with returns above the weekly 50 and 200 MAs, the bears will remain in congeal in the short term.
Monero Ecosystem Lacks Needed Support from CEXs
In the past year, the Monero project has experienced significant headwinds after major centralized cryptocurrency exchanges delisted the altcoin in different markets. As Coinspeaker previously reported, Monero users took a major hit after the Binance exchange announced the delisting of XMR due to regulatory concerns.
In the latest Monero blow, the Kraken exchange announced that it will delist XMR in the European Economic Area (EEA) due to regulatory changes.
“We did not take this decision lightly and remain committed to providing our European clients with an exceptional trading experience,” Kraken noted.
According to the announcement, Kraken will halt the trading and deposits of all the XMR markets – including in the USD, EUR, USDT, and BTC pairs – to its EEA clients by October 31, 2024. By the end of this year, Kraken has advised its EEA clients to have finalized the withdrawals of the XMR coins as the deadline for withdrawals will be at 3:00 PM UTC.
For any remaining XMR funds that will not have been withdrawn by December 31, Kraken intends to automatically convert the funds to Bitcoin, based on the going market rate. However, the concerted funds will not be distributed until January 6th, 2025.
Bigger Picture
The community of Monero developers and users has continued to build a robust market and protocols to enable the mainstream adoption of XMR in the long haul. In addition to regular network updates to further enhance user privacy and security, Monero developers have been working on web3 projects to enable seamless integration of XMR in the real-world space.
However, the mainstream adoption of Monero is heavily threatened by the favoring regulatory framework in major jurisdictions.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
