As a seasoned researcher with a knack for cryptocurrencies and a soft spot for privacy-focused projects like Monero (XMR), I find myself in a rather interesting predicament. The recent correction, coupled with the geopolitical turmoil in the Middle East, has sent XMR tumbling, leaving me to ponder its future prospects.
Amidst the recent cryptocurrency downturn, triggered by the escalating turmoil in the Middle East, I’ve noticed that Monero (XMR), a seasoned project renowned for prioritizing user privacy and security, dipped by approximately 8% within the last 24 hours, trading around $142.22 during the early New York session on October 2nd. This dip has caused this mid-tier altcoin to slide beneath significant support lines, given its fully diluted market capitalization of roughly $2.6 billion and an average daily trading volume of about $98 million.
Over the past week, the XMR price has regularly ended its trading sessions below the 200 moving average (MA) for the entire year. This cryptocurrency, considered an altcoin, has been negatively affected by a broader bearish trend that set in following the death cross between the 50 and 200 weekly MAs, which occurred last year.
Additionally, the price of XMR has encountered notable resistance at approximately $178 since July 2022, yet it has managed to create a strong support base around $100. Over the last two months, the Monero-USD exchange rate appears to have formed a potential reversal configuration, marked by a double top and a bearish divergence on the weekly Relative Strength Index (RSI).
Technically speaking, when the returns exceed both the short-term (50) and long-term (200) Moving Averages, it suggests that bears may hold their ground temporarily.
Monero Ecosystem Lacks Needed Support from CEXs
Over the past year, the Monero project has faced strong resistance following the removal of the altcoin from various centralized cryptocurrency exchanges in different regions. Previously reported by Coinspeaker, Monero users have suffered losses after Binance, a major exchange, declared that it would no longer support XMR trading due to regulatory issues.
Recently, Kraken Exchange shared that they will stop supporting Monero (XMR) within the European Economic Area (EEA), as a result of alterations in the regulatory landscape.
Kraken emphasized that they didn’t make this choice carelessly, and they are steadfast in their dedication to offering top-notch trading experiences for their European customers.
As a researcher reporting on the matter, I’m sharing that Kraken has announced they will cease trading and deposits for all XMR markets – including USD, EUR, USDT, and BTC pairs – to their clients in the European Economic Area (EEA) by October 31, 2024. The advisement from Kraken is for EEA clients to complete their withdrawals of XMR coins by the end of this year, as the deadline for these transactions will be 3:00 PM UTC.
Starting from December 31st, any Monero (XMR) funds left unclaimed by you will be automatically swapped to Bitcoin at the current market price. But don’t expect these converted funds until January 6th, 2025.
Bigger Picture
The group comprising Monero developers and users has persistently strengthened its market and established protocols aimed at facilitating widespread acceptance of XMR over time. Beyond periodic network upgrades that aim to improve user privacy and security, the Monero development team is actively engaged in web3 initiatives to ensure effortless real-world use of XMR.
As a crypto investor, I’ve noticed that the widespread acceptance of Monero could be compromised due to the supportive regulatory environments in key regions, which may potentially pose challenges for this privacy-focused cryptocurrency.
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2024-10-02 16:30