The price of Monero (XMR) has fallen significantly after US-based cryptocurrency exchange Kraken decided to stop offering Monero services. This decision particularly affects users in the European Economic Area (EEA).
Over the past day, Monero (XMR) price has fallen by 6.55%, falling from $153 to $143.50. This price movement follows the delisting of a number of digital currencies from multiple exchanges. Regulators are increasing scrutiny of privacy-focused digital currencies.
For customers in the EEA, Monero trading and deposits on Kraken will be suspended by October 31, 2024. Customers in this region will be prohibited from trading or depositing Monero through the XMR market.
These include XMR/USD, XMR/EUR, XMR/BTC, and XMR/USDT, all of which will be retired by the dates listed above. The announcement puts further pressure on Monero's price, which has also been affected by a regulatory crackdown.
Monero price falls on news of delisting
Monero price fell by 6.55% as the Kraken exchange stopped servicing the token due to EEA regulatory changes. The European Union's new AML regulations, primarily based on the MiCA law, have put cryptocurrencies like Monero in a dangerous situation.
Such a sharp price decline is also due to increased selling pressure when many traders sell their products. Despite increased trading volume during this period, prices continue to fall. This move shows that the market is bearish
Technical indicators continue to show bearish momentum
Technical analysis shows that Monero maintains bearish signals in the short term with current price changes. The relative strength index (RSI), which tracks the rate of change in a stock's price movement, is set at 32.13.
XRM Trading Chart: Source TradingView
This puts Monero just below the oversold level, meaning the price is likely to continue falling unless the current trend reverses and people start buying. Readings below 30 usually indicate extremely oversold territory, and the market is currently getting close to it, but not quite there.
Also, the Moving Average Convergence Divergence (MACD) shows a bearish trend for Monero. The MACD line is still below the signal line and both are in negative territory, indicating weak buying pressure. The histogram is also slightly negative, supporting a bearish impression.
Monero price is almost in oversold territory, but there is no upward movement. There is little buying pressure to counter the selling pressure. This suggests that regulatory news has a significant psychological impact on traders, with most traders choosing to sell rather than hold.
Kraken withdrawal deadline and regulatory implications
Kraken has clearly stated the Monero delisting schedule which will help you understand the plan of action. Trading and deposits will be suspended by October 31, 2024. However, customers can withdraw their XMR holdings until December 31, 2024.
After this short period, any Monero remaining in your account will be converted to BTC at the market price. Kraken informed its customers that they will receive the equivalent BTC in their accounts by January 6, 2025.
This decision to delist Monero was prompted by the fact that privacy coins are receiving severe backlash from regulators around the world. New EU rules on anti-money laundering have complicated the process of supporting privacy coins.
The law prohibits the use of tokens like Monero that offer enhanced anonymity. This sentiment is echoed in other parts of the world, with many major exchanges choosing to remove Monero from their platforms.
They do this to comply with regulatory requirements. On June 10, 2024, Kraken stopped offering Monero in Belgium and Ireland due to regulatory impacts.
With these rules extended across the EEA, Kraken is taking a broader approach to completely remove Monero from the region's markets. Similar to Kraken, other centralized exchanges such as Binance and OKX are also facing increasing pressure to delist their privacy coins.
