Listings and delistings on Binance, one of the major cryptocurrency exchanges, have always had a certain impact on the price of cryptocurrencies. This has been widely seen in the past when the prices of popular meme coins such as Shiba Inu, Pepe, and many others rose significantly. However, Monero, a popular privacy-focused token, experienced a significant drop in price and trading volume shortly after Binance announced its decision to delist the token.
The announcement was not universally received, as some influencers heavily criticized the move. Immediately after this move, the XMR price began to fall significantly from above $160 to near $100. This made market participants extremely bearish on XMR as a sharp rise in open interest (OI) was recorded immediately after the trade.
After Binance was delisted, open interest increased by 280% and funding interest rates became significantly negative. A rise in OI indicates that new money is flowing into the market, so current trends may continue to prevail. Meanwhile, the negative funding ratio signals distrust among traders as they believe the bull market will trend further down in the coming days.
XMR price fell by nearly 40%, but bulls managed to regain half of it. Moreover, the technicals do not seem to be in a bullish direction, so the token could fall further in the coming hours. However, mounted short positions can be liquidated quickly, which could create the volume needed to breathe a sigh of relief and move towards the initial levels.
