- The price of XMR fell almost 7% after Kraken was delisted from the EEA, reflecting regulatory challenges for privacy coins.
- Bearish technical indicators suggest that Monero’s downtrend may persist due to increasing regulatory pressure.
The price of Monero (XMR) fell almost 7% following Kraken’s announcement that it was withdrawing the privacy currency from the European Economic Area (EEA) due to regulatory changes. The volatility of Monero (XMR) may also have had an influence, as CNF reported that XMR was betting on stability and innovation.
As the top private coin by market capitalization, XMR is navigating increasingly difficult terrain. Its progress is hampered by the low valuations and negative yields plaguing the privacy coin sector.
Kraken, one of the oldest cryptocurrency exchanges, has informed its EEA customers that Monero trading and deposits will cease on October 31. Additionally, users have until December 31 to withdraw their XMR holdings, after which remaining balances will be automatically converted to bitcoin.
As the updated chart below shows, Kraken cited regulatory pressures to justify the move, leaving Monero facing significant challenges in an already struggling industry.
Bearish Momentum and Strong Downtrend Indicators
Despite its dominance in the privacy coin market, technical indicators paint a bleak picture for Monero. The Directional Movement Index (DMI) shows that Monero’s average directional index (ADX) has climbed 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’s DI, which reflects buying pressure, is low at 12, while its DI, which represents selling pressure, has climbed to 36.7, suggesting that bearish momentum is firmly in place. under control. This disparity indicates that Monero’s downtrend may persist, potentially worsening the ongoing correction.
XMR Death Cross and Price Prediction
Monero received a critical bearish signal on September 24, when its exponential moving averages (EMA) formed a death cross (short-term EMA crosses below the long-term EMA) triggering a 22% price drop. . Currently, according to CoinMarketCap, Monero (XMR) is trading at 138,89 $i.e. a drop in 6,51 % during the last day and 16,11 % over the last week.
The confidential coins, which are under regulatory scrutiny, coupled with high ADX and strong bearish indicators, suggest that the market’s downtrend is likely to continue, with few signs of a reversal in sight .
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