Mainstream adoption of the Web3 protocol and digital assets, driven by increased regulation, is having a major impact on privacy tokens, led by Monero (XMR).
important notes
- Monero price has fallen over 8% in the past 24 hours, trading below key support levels.
- Kraken exchange has announced that users will need to withdraw their XMR coins by the end of this year.
Monero (XMR), a veteran crypto project primarily focused on user privacy and security protection, has fallen more than 8% in the past 24 hours, dropping on October 2, amid a correction in cryptocurrencies due to the rising Middle East crisis. It traded at about $142.22 on Wednesday. , early New York Sessions. As a result, the mid-cap altcoin, with a fully diluted valuation of approximately $2.6 billion and an average daily trading volume of approximately $98 million, fell below a key support level.
On the weekly time frame, XMR price has consistently closed below the 200 moving average (MA) since the beginning of the year. Altcoins are suffering from macro-bearish sentiment after the weekly moving average slump between 50 and 200 last year.
Furthermore, despite establishing a solid support level around $100, XMR price faced significant resistance around $178 since July 2022. Over the past two months, Monero prices against the US dollar have formed a potential reversal pattern, characterized by a double top and bearish divergence in the weekly Relative Strength Index (RSI).
From a technical perspective, returns above the weekly 50 and 200 moving averages will solidify the bear market in the short term.
Monero ecosystem lacks necessary support from CEX
Last year, the Monero project faced significant headwinds after major centralized cryptocurrency exchanges delisted altcoins from various markets. As previously reported by Coinspeaker, Monero users were hit hard after the Binance exchange announced the delisting of XMR due to regulatory concerns.
In the latest blow to Monero, the Kraken exchange announced that it will delist XMR in the European Economic Area (EEA) due to regulatory changes.
“We have not taken this decision lightly and remain fully committed to providing an exceptional trading experience to our European customers,” Kraken said.
According to the announcement, Kraken plans to suspend trading and deposits in all XMR markets, including USD, EUR, USDT, and BTC pairs, for EEA customers by October 31, 2024. has notified its EEA customers to complete their XMR coin withdrawals as the withdrawal deadline is 3:00 PM UTC.
For any remaining XMR funds not withdrawn by December 31st, Kraken plans to automatically convert the funds to Bitcoin based on the current market rate. However, the joint funds will not be distributed until January 6, 2025.
big picture
Monero's community of developers and users has continued to build a robust market and protocol that will enable long-term mainstream adoption of XMR. In addition to regular network updates to further enhance user privacy and security, Monero developers have been working on a Web3 project that enables seamless integration of XMR in real-world spaces.
However, mainstream adoption of Monero is seriously threatened by favorable regulatory frameworks in major jurisdictions.
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Disclaimer: Coinspeaker is committed to providing fair and transparent reporting. This article is intended to provide accurate and timely information but should not be taken as financial or investment advice. Market conditions can change rapidly, so we recommend that you verify the information yourself and consult a professional before making any decisions based on this content.
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