Monero (XMR) has seen a nearly 7% decrease in price following Kraken’s announcement to delist the cryptocurrency from the European Economic Area due to regulatory changes. As the leading privacy coin by market capitalization, XMR is confronting additional hurdles in an already challenging sector characterized by low valuations and negative returns for many of its rivals.
Despite its leading position in market capitalization, technical indicators such as the Directional Movement Index (DMI) and Exponential Moving Averages (EMA) indicate a significant downtrend. Should the current bearish momentum continue, Monero might soon test crucial support levels, exacerbating the existing correction.
XRM Is By Far The Biggest Player In The Privacy Coins Market
Monero (XMR) has experienced an almost 7% decline in price after Kraken announced it would be delisting the coin for users within the European Economic Area (EEA) due to regulatory shifts. Kraken, one of the oldest cryptocurrency exchanges globally, notified its EEA clients that trading and deposits for all Monero markets would cease on October 31, with any open orders being automatically closed.
Users have until December 31 to withdraw their Monero balances, after which any remaining amounts will be converted to Bitcoin. The exchange stated that it had no alternative but to delist Monero from the EEA in light of regulatory pressures.
Read more: Monero: A Comprehensive Guide to What It Is and How It Works
The year 2024 seems to pose significant challenges for privacy coins, with only three out of the top ten showing positive returns. This sector continues to present complexity within the cryptocurrency space, typically exhibiting lower valuations than other areas. Among the top ten privacy coins, only Monero (XMR) has a market capitalization exceeding $1 billion, specifically $2.6 billion.
The collective market cap of the other nine leading privacy coins is $3.1 billion, which falls short of PEPE’s market cap of $4.1 billion, clearly illustrating the difficulties faced by this sector.
Monero DMI Shows The Current Trend Is Strong
The Directional Movement Index (DMI) for Monero indicates that the ADX has climbed to 51.3, demonstrating a strong and established trend in the market.
The ADX is a critical metric for assessing the strength of a trend—whether it’s moving upward or downward—and indicates if the trend is robust. The DMI consists of three lines: the ADX, the +DI, which reflects buying or upward pressure, and the -DI, which measures selling or downward pressure.
Currently, Monero’s +DI stands at a relatively low 12, while the -DI has risen sharply to 36.7, suggesting that sellers are firmly in control and bearish momentum is prevailing in the market. This considerable gap between the two indicators suggests that the current correction could still be in its infancy, as the downtrend appears to be gaining strength.
With such a high ADX, this bearish movement seems to be backed by solid momentum, indicating that further declines could be imminent as selling pressure remains robust and may continue to drive prices lower. The combination of a high ADX and dominant -DI indicates that the market is in a severe downtrend, and a reversal does not seem to be on the horizon at this time.
XRM Price Prediction: Is The Correction Over?
On September 24, Monero (XMR) faced a bearish signal when its EMA lines formed a death cross, which triggered a 22% price drop.
Exponential Moving Averages (EMA) are utilized to gauge price trends and assign more weight to recent data. A death cross occurs when the short-term EMA crosses below the long-term EMA, frequently signaling the onset of a downward trend.
This bearish indicator, in conjunction with the current strong ADX reading, implies that the market is undergoing a pronounced downtrend that may persist.
Read more: Monero (XMR) Price Prediction 2023/2025/2030
The space between the EMA lines isn’t notably wide yet, suggesting that the correction may still be in the early phases. If the downtrend continues, XMR could soon test significant support levels at $133 or potentially as low as $116, indicating a further possible decline of 16.5%.
Conversely, if the trend reverses, Monero would need to breach resistance at $143. Should it accomplish this, the next targets would be $165 and $178, signaling potential recovery.
The post Monero (XRM) Price Faces 7% Drop After Kraken’s Delisting in Europe: What’s Next appeared first on BeInCrypto.
