Monero (XMR) is showing early signs of recovery, posting a 5% gain in the last 24 hours and emerging as one of the cryptocurrency market’s top performers. As of writing, Monero is trading at $146.63, boasting a market cap of $2.7 billion. This slight uptick offers some much-needed relief to investors after a volatile start to October.
The month began on a low note for Monero, starting at $153.80. However, it faced a sharp decline, dropping to $142.96 on October 2, and spiraling further to its lowest point at $136.43 the following day. This plunge coincided with the announcement from Kraken, a major cryptocurrency exchange, regarding the delisting of Monero in the European Economic Area (EEA). The move is likely in anticipation of the upcoming Markets in Crypto-Assets Act (MiCA) set to take effect in December, raising concerns over the future of privacy-focused cryptocurrencies.
Kraken Delisting Sends Shockwaves
Kraken’s decision to delist Monero sent ripples through the market, igniting fears of increased regulatory scrutiny surrounding privacy coins. Monero’s unique technology, designed to obfuscate transaction details, has long attracted regulatory attention. The looming MiCA framework appears to be tightening the noose even further, casting a shadow over Monero’s future in regulated markets.
Interestingly, speculation has emerged surrounding the timing of Monero’s price drop. Allegations suggest that XMR began to sell off before Kraken’s delisting announcement, raising eyebrows regarding potential insider trading. This is particularly concerning given that the broader cryptocurrency market was experiencing a rally during the same period, while Monero took a sharp downturn.
Despite the regulatory hurdles Monero faces, advocates of privacy coins remain cautiously optimistic. Many believe that Monero’s focus on anonymous transactions ensures its relevance, regardless of any exchange delistings. A Monero proponent, who goes by ‘Klaus,’ stated, “Regardless of whether it maintains this price or dips below a dollar, best believe whales will be using this technology to funnel their wealth.”
Technical Analysis: Testing Key Resistance Levels
Although Monero has shown signs of recovery, it has yet to fully bounce back from its October lows, with trading volume remaining subdued. Currently, XMR’s daily trading volume has fallen by 24.5%, hovering around $67.8 million, indicating waning trader interest.
From a technical perspective, Monero has rebounded from a crucial support level at $134, a price point that has held steady since early July. This bounce has lifted XMR back above the lower Bollinger Band, but the next significant hurdle lies at $163, the midline of the Bollinger Bands. To confirm a sustained bullish reversal, Monero must clear this level with strong momentum.
Beyond $163, the psychological resistance at $180 looms as a formidable barrier, having rejected upward price movements in both June and September. Breaking through these levels would be critical for Monero to re-establish a stronger bullish trajectory.
Technical indicators paint a cautiously optimistic picture as well. The Moving Average Convergence Divergence (MACD) remains in bearish territory, with the MACD line still below the signal line. However, the two lines are converging, hinting that momentum could shift soon. Additionally, the histogram remains in the red, indicating that selling pressure may be waning and bulls could soon take control.
Also Read: Monero Drops 7% As Kraken Delists Privacy Coin In Europe Amid Regulatory Crackdown
Volume levels, while stable as of press time, are insufficient to signal a decisive bullish move. A stronger uptick in volume will be necessary for Monero to gain the traction needed for a more robust recovery.
In summary, Monero is attempting to stage a comeback amid regulatory challenges and market fluctuations. While recent gains provide a glimmer of hope, the cryptocurrency must overcome key resistance levels and improve trading volume to sustain its upward momentum. As the crypto landscape evolves, Monero’s unique position as a privacy coin will continue to be a focal point for both investors and regulators alike. Whether Monero can maintain its trajectory remains to be seen, but for now, it stands as a symbol of resilience in a tumultuous market.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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