Kraken Exchange’s decision to remove Monero (XMR) from the internet sent shockwaves through the cryptocurrency world. Monero trading and deposits in the European Economic Area (EEA) will be closed before the end of October, 2024. Increased regulatory scrutiny has been cited as the reason for this move. The pressure has dragged the coin’s price below $150, indicating that privacy-focused cryptocurrencies still face many challenges.
Price Drops
Monero was also not left out of the rollercoaster ride in terms of value. In the days before the delisting announcement Kraken, was hovering around $158, failing to maintain its level amid a broader bearish trend that has eaten up most of the value of cryptocurrencies.
The news of the delisting just added to the decline: XMR dropped more than 10% right after the announcement, with the crypto trading at around $144.50. Analysts are now looking to see if it can hold above the key support levels at $150 and $155, as the downside is testing the lows even at $135.
Even so, there are technical indicators that indicate that Monero may recover. The Moving Average Convergence Divergence shows a slight bearish trend while at the same time the Relative Strength Index showed that there is still room for upward movement in case of increasing buying pressure. General sentiment remains cautious due to increasing selling pressure.
XMR market cap currently at $2.58 billion. Chart: TradingView.com
Regulatory Concerns
Kraken’s Monero delisting is not an isolated incident. It symbolizes a larger trend of increasing regulatory pressure on private coins. Authorities are becoming concerned about the potential use of cryptocurrencies such as Monero for illegal purposes, which is why exchanges are being forced to re-evaluate their support for such assets.
Many challenges come with this new regulatory environment as Monero seeks to balance its commitment to privacy with the real need for compliance.
XMR down in the last 24 hours. Source: CoingeckoMonero’s unique features, including private addresses and ring signatures, make it one of the favorite options among users who put a premium on anonymity in everything they do. But that same anonymity has raised the ire of regulators who fear it could be used as a way to “get away with,” other things.
As exchanges like Kraken distance themselves from privacy coins, Monero may find itself at a crossroads: continue to advocate for user privacy or adapt to a regulated environment.
Future Outlook
In anticipation of Monero’s price path, market observers are giving different predictions. According to some estimates, Monero may regain its high price point in mid-2026 if regulatory hurdles can be negotiated and adoption continues to rise, which is why it may regain its high of $518. Others remain skeptical, suggesting that XMR may find it difficult to maintain its value without significant changes in market sentiment or regulatory clarifications.
Featured image from Vecteezy, chart from TradingView