The decision by Kraken Exchange to remove Monero (XMR) from its platform has sent ripples through the cryptocurrency community. Trading and deposits for Monero in the European Economic Area (EEA) are set to cease before the end of October 2024, primarily due to heightened regulatory scrutiny. This has pulled the coin’s price down below $150, illustrating the ongoing challenges faced by privacy-centric cryptocurrencies.
Price Downturn
Monero has not escaped the volatility in the market. Just days prior to the Kraken delisting announcement, its value was around $158, struggling to maintain stability amid a broader market downturn that has diminished the value of many cryptocurrencies.
The delisting news has only compounded the price decline: XMR dropped over 10% shortly after the announcement, trading at approximately $144.50. Analysts are now monitoring whether it can maintain crucial support at $150 and $155, as further drops could test even lower levels around $135.
Nevertheless, certain technical indicators suggest that Monero could stage a recovery. The Moving Average Convergence Divergence indicates a slight bearish trend while the Relative Strength Index suggests there’s potential for upward movement if buying pressure increases. Overall sentiment remains cautious due to rising selling pressure.
XMR market cap currently at $2.58 billion. Chart: TradingView.com
Regulatory Issues
The removal of Monero from Kraken is not an isolated occurrence. It represents a larger trend of increasing regulatory scrutiny on privacy coins. Authorities are concerned about the potential misuse of private coins such as Monero, prompting exchanges to reassess their support for these assets.
This new regulatory landscape presents numerous challenges for Monero as it seeks to uphold its commitment to privacy while navigating the growing need for compliance.
XMR decreases in the last 24 hours. Source: Coingecko
Monero’s distinctive features, including stealth addresses and ring signatures, make it a preferred choice for users valuing anonymity in their transactions. However, this very anonymity has led to concerns from regulators who fear it might be exploited for illicit activities.
As platforms like Kraken pull away from privacy coins, Monero could be faced with a pivotal decision: continue to promote user privacy or adjust to a more regulated environment.
Future Perspectives
When predicting the trajectory of Monero’s price, market analysts offer varying outlooks. Some forecasts suggest Monero could return to higher price levels by mid-2026 if regulatory hurdles can be addressed and adoption rises, potentially reaching its all-time high of about $518. Others are skeptical, arguing that XMR may struggle to retain its value without significant changes in market sentiment or a clearer regulatory framework.
Featured image from Vecteezy, chart from TradingView
