On February 6th, Binance announced that it will delist Monero (XMR) and three other cryptocurrencies from its services on February 20th. Following this announcement, Monero experienced massive panic selling.
However, as Finvold reported on January 4 of this year, the crypto market was already anticipating delisting. On this occasion, Binance labeled XMR under a “monitoring tag”, providing a clear signal to the market leading to this latest announcement a month later.
As a next step, the centralized exchange will remove the four currently available Monero pairs on February 20th. The pairs are XMR/BNB, XMR/BTC, XMR/ETH, and XMR/USDT. Binance will void Monero deposits the next day, but investors will have three months to withdraw their coins.
In addition to XMR, major cryptocurrency exchanges also plan to delist Aragon (ANT), Multichain (MULTI), and VAI (VAI) under the same conditions. Investors should use Binance alternatives to trade these coins.
Monero price analysis during Binance delisting
In particular, Monero was hit hard by Binance's delisting announcement. So far, XMR has recorded a loss of over 35% from its pre-news price to its current lows. Privacy Coin was trading at $165.86, but has fallen to $107.36 at the time of writing.
From a technical analysis perspective, Monero price support is just below the $100 psychological support. If these levels cannot be sustained, the goal could reach $75 or even $50 per coin in the next few weeks.
At this time, the market has not fully digested the full impact of the loss of a large liquidity pool on Binance. Therefore, investors may expect further selling as the situation evolves. Other exchanges and ramp services may also be affected by this delisting, leading to further panic selling events.
Nevertheless, crypto traders are also known for aggressive reactions when faced with fear, uncertainty, and doubt (FUD). Therefore, this initial decline may have been an overreaction, with Monero's price falling to an oversold Relative Strength Index (RSI).
Additionally, some Monero enthusiasts are celebrating the delisting on X (formerly Twitter). These contributors believe that this event will foster positive developments in the open source and decentralization landscape and have a positive impact on XMR.
In conclusion, the cryptocurrency market remains in an unpredictable speculative environment. XMR could recover slightly from here or fall further. Anything can happen in the short and medium term, so investors, users and developers should always be cautious.
Disclaimer: Content on this site should not be considered investment advice. Investments are speculative. When you invest, your capital is at risk.
