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What’s With Monero (XMR) After Binance De-listing

source-logo  cryptonews.net 08 February 2024 09:31, UTC
Ruth Kamau

In a stament earlier on Feb.7, a renowned crypto exchange Binance announced the de-listing of Monero (XMR), sending the token plunging 31.3% from its previous 24-hour price, as it traded at $112.36 as of 6:12 p.m. London time.

Representatives from Binance claim that Monero no longer satisfies the requirements the cryptocurrency exchange has for listing coins. Listed digital assets are routinely examined by Binance to make sure they still live up to our high requirements. In response to a user’s inquiry on the rationale behind delisting Monero, the Binance team stated, they conducted a thorough review that may lead to a decision to delist the asset when a coin or token no longer meets standards or there are changes in the industry.

The delisting of Monero has been attributed by some in the cryptocurrency industry to Binance’s unwillingness to work with anonymous cryptocurrencies that go against to the interests of the government.

This notion brought more views from the crypto community with renowned Kraken Exchange specifically siding with Monero, quoting “Privacy is not a crime”

Monero’s Price Reaction to The De-listing

Looking at 4-hour XMR/USDT charts, we notice a significant drop in price represented by the long red (bearish) candlesticks. Amid this bearish takeover, the Alligator indicator (composed of three smoothed moving averages) is starting to spread out, indicating an increase in market momentum to the downside. This indicates increasing selling pressure on the markets pointing to a bearish short term for Monero.

On the other hand, the RSI (Relative Strength Index) has plummeted, possibly entering the oversold region, which can sometimes indicate a potential for a price rebound or consolidation after an overreaction, although it also confirms strong selling pressure in the immediate term. In line with this, the MACD (Moving Average Convergence Divergence) lines are showing a steep downward trajectory and growing separation, reinforcing the strong bearish momentum.

This sharp downward price action is typical after a negative announcement such as the delisting, where market participants may rapidly sell off their holdings in anticipation of reduced liquidity and potentially lower prices in the future. The delisting announcement appears to have caused a significant increase in sell orders, leading to the observed price drop. The volume spike accompanying the large bearish candlesticks further confirms the increased trading activity and sell-side pressure.

4-hour XMR/USDT chart | Source: TradingView

Other De-listings amid New Listing

However, not only Monero was de-listed from Binance earlier today. Multichain (MULTI), Vai (VAI), and Aragon (ANT) were also delisted, according to the firm’s announcement. Although not as well-known as Monero, Multichain, Vai, and Aragon have also fallen short of the requirements in terms of development activity, trade volume, and network stability.

Monero’s price has reacted negatively to the delisting news from Binance, with indicators supporting a bearish outlook in the short term. Investors and traders often view delistings as a reduction in the asset’s accessibility and potential demand, which can lead to a decrease in price.