Kraken Exchange’s decision to delist Monero (XMR) sent shock waves throughout the crypto industry. Monero trading and deposits in the European Economic Area (EEA) will be suspended by the end of October 2024. The reason for this is said to be increased oversight by regulatory authorities. This pressure has pushed the coin's price below $150, showing that the privacy-focused cryptocurrency still faces many challenges.
price decline
Monero has not been spared a roller coaster ride on price. Days before Kraken's delisting announcement, it was hovering around $158, failing to maintain its footing amid a broader bearish trend that has eaten away much of the cryptocurrency's value.
News of delisting further exacerbated the decline. XMR plunged more than 10% immediately after the announcement, with the cryptocurrency trading at around $144.50. Analysts are now focused on sustaining above the key support levels at $150 and $155, while a higher decline would test even lower levels around $135.
Even with this, there are technical indicators that indicate the potential for Monero to recover. The moving average convergence divergence indicates a slight bearish trend, but at the same time the relative strength index shows that there is still room to move higher in case buying pressure increases. The overall sentiment remains cautious due to increasing selling pressure.
XMR market cap currently at $2.58 billion. Chart: TradingView.com
Regulatory concerns
Monero’s delisting from Kraken is not an isolated event. This is emblematic of a larger trend of increasing regulatory pressure on private coins. Authorities are concerned that private coins like Monero could be used for illegal purposes, forcing exchanges to reevaluate their support for such assets.
This new regulatory environment comes with many challenges as Monero attempts to balance privacy efforts with the actual need for compliance.
XMR down in the last 24 hours. Source: Coingecko
Monero's unique features, such as stealth addresses and ring signatures, make it one of the popular choices among users who value anonymity in all their transactions. But that same anonymity has drawn the ire of regulators who worry that it could in turn be used as a way to “get away with” other matters.
Monero may be at a crossroads as exchanges like Kraken distance themselves from privacy coins. Either continue to advocate for user privacy or adapt to an increasingly regulated environment.
Future outlook
In anticipation of Monero's price development, market observers have provided various predictions. According to some estimates, if regulatory hurdles are negotiable and adoption continues to increase, Monero could regain an even higher price range by mid-2026, perhaps reaching an all-time high of around $518. There is a possibility. Some skepticism remains, suggesting that absent a significant change in market sentiment or regulatory clarity, it may be difficult for XMR to maintain its value.
Featured image from Vecteezy, chart from TradingView
