Monero (XMR) has seen a significant 7% price drop following Kraken's announcement to delist the coin for users in the European Economic Area (EEA). This decision comes in response to regulatory changes that have pressured one of the world’s oldest crypto exchanges to cease trading and deposits for Monero markets by October 31.
Clients in the EEA are required to withdraw their Monero holdings by December 31. After this date, any remaining balances will be converted to Bitcoin. Kraken stated that delisting Monero was unavoidable due to increasing regulatory pressures.
As the largest privacy coin by market cap, Monero faces intensified challenges in a sector already grappling with low valuations. Currently, only three out of the top ten privacy coins show positive returns, indicating a tough environment for privacy-focused cryptocurrencies.
Monero's technical indicators, including the Directional Movement Index (DMI) and Exponential Moving Averages (EMA), indicate a strong downtrend. The DMI shows an ADX level of 51.3, confirming a robust trend. The current state of the market suggests that if bearish momentum continues, Monero may test crucial support levels around $133 and potentially as low as $116.
On September 24, a bearish signal emerged as Monero’s EMA lines formed a death cross, which typically indicates the initiation of a downtrend. The current strong ADX reading reinforces expectations of continued downward pressure. Should the trend reverse, Monero must break through the resistance at $143 to signal a recovery.
