Monero price has come under intense pressure in the past few weeks as concerns about its future remains. XMR, its coin, initially plunged from over $165 to less than $100 this week. It then bounced back and was trading at $125 at the time of going to press.
Monero Binance delisting
The main reason why XMR price crashed is that Binance, the biggest crypto exchange in the world, announced plans to delist the coin. The company will also delist other privacy-focused coins like Zcash and Dash.
Delisting by Binance is an important thing because the company has the biggest market share in an industry that is highly competitive. A look at Monero’s volume flow shows that most of its trading happens in Binance followed by KuCoin, Gate.io, and Kraken.
The main reason why Binance is delisting Monero is that regulators have become highly critical of privacy tokens. Unlike Bitcoin, it is usually not possible to track these transactions because they are highly encrypted. This has made Monero the perfect cryptocurrency among people with nefarious activities like in cybercrime.
Monero has sent memories of other assets known as crypto mixers, which are also used to hide transactions and promote money laundering. Last year, authorities shut down ChipMixer, a darkweb platform. They also shut down Tornado Cash and sued its creators.
Therefore, there is a likelihood that Binance is delisting Monero to avoid getting in legal trouble in the United States. As you remember, the company made a big settlement with the Department of Justice in 2023. It agreed to pay $4.3 billion and to fire its CEO, Changpeng Zhao as he awaits a jail sentence.
Will this delisting kill Monero?
The XMR price drop happened since many people believe that the delisting has a chance to kill Monero. However, I believe that XMR will continue going strong because it is still supported by other exchanges like Kraken, OKX, and HTX. This means that people will still continue buying, selling and using XMR for transactions.
The most recent data shows that the daily volume of Monero transactions have been quite steady in the past few months. Monero’s daily transactions jumped to almost 50,000 on December 12th. Since then, they have been averaging over 20,000 every day, which is a good number.
As shown below, Monero’s daily transactions have not deviated so much in the past three years. This is a sign that the coin has a niche in the crypto industry. Remember, unlike other coins, Monero is often seen as a boring crypto since it rarely makes any headlines.
Monero price prediction
Turning to the daily chart, we see that the XMR price dipped sharply this week after Binance unveiled plans to delist it. It crashed to a low of $99.60, which was over 44% below its highest point this year. This drop is notable because it happened at a time when other cryptocurrencies were starting to crawl back.
Monero remains below the key support at $129.76, its lowest swing in June last year. It has remained below the 50-day and 10-day moving averages, which is a bearish sign. XMR seems to be forming a bearish flag or pennant pattern. This pattern is characterized by a long line followed by a brief consolidation.
Therefore, the recent rebound is likely part of a dead cat bounce. This is a situation where an asset plunges and then bounces back temporarily as some investors buy the dip. As a result, the outlook for Moneto price is bearish, with the initial price to watch being at $99.70. A break below that level will lead to more downside.
