- XMR price dropped nearly 7% after Kraken鈥檚 EEA delisting, reflecting regulatory challenges for privacy coins.
- Bearish technical indicators suggest Monero鈥檚 downtrend may persist amid increasing regulatory pressure.
Monero (XMR) experienced a nearly 7% price drop following Kraken鈥檚 announcement to delist the privacy coin in the European Economic Area (EEA) due to regulatory changes. This may also have been influenced by volatility in Monero (XMR), as CNF reported XMR betting on stability and innovation.
As the leading privacy coin by market capitalization, XMR is navigating increasingly difficult terrain, compounded by low valuations and negative returns plaguing the privacy coin sector.
Kraken, one of the oldest crypto exchanges, informed its EEA clients that Monero trading and deposits would cease by October 31. Additionally, users have until December 31 to withdraw their XMR holdings, after which any remaining balances will be automatically converted to Bitcoin.
As shown in the updated chart below, Kraken cited regulatory pressures as the reason behind this decision, leaving Monero facing significant challenges in an already struggling sector.
Bearish Momentum and Strong Downtrend Indicators
Despite its dominance in the privacy coin market, technical indicators paint a grim picture for Monero. The Directional Movement Index (DMI) shows that Monero鈥檚 Average Directional Index (ADX) has surged to 51.3, indicating a strong downtrend in the market. The ADX measures the strength of a trend, with values above 50 suggesting a well-established trend.
Currently, Monero鈥檚 +DI, reflecting buying pressure, is low at 12, while its -DI, representing selling pressure, has climbed to 36.7, suggesting that bearish momentum is firmly in control. This disparity signals that Monero鈥檚 downtrend could persist, potentially deepening the ongoing correction.
XMR鈥檚 Death Cross and Price Prediction
Monero saw a critical bearish signal on September 24, when its Exponential Moving Averages (EMA) formed a death cross鈥攚here the short-term EMA crosses below the long-term EMA鈥攖riggering a 22% price drop. As of now, according to CoinMarketCap, Monero (XMR) is trading at $138.89, a decrease of 6.51% in the past day and 16.11% in the past week.
Privacy coins, struggling under regulatory scrutiny, coupled with the high ADX and strong bearish indicators, suggest that the market鈥檚 downtrend is likely to continue, with little sign of reversal in sight.
