In an announcement that has caused quite a stir, in the world of cryptocurrency, Binance, a cryptocurrency exchange globally revealed its decision to remove monero (XMR) from its list of supported cryptocurrencies. Monero is known for its privacy features.
This move is part of Binances review process to ensure that all listed assets meet their strict criteria. The delisting is scheduled to take effect on February 20 2024. It also includes three digital currencies; ANT, MULTI and VAI.
The news of this removal had an impact on the market value of monero leading to a decline of 32% within just one day. Binance cited non compliance with their listing standards as the reason behind their choice to halt trading pairs involving monero such as XMR/BNB, XMR/BTC, XMR/ETH and XMR/USDT. This decision follows an action taken by Okx in December. Further contributed to the reaction seen in the market regarding moneros status.
On the day when this news came out trading between XMR and USDT on Binance accounted for 29% of the trading volume for monero which exceeded $64 million. The immediate and notable impact was reflected in moneros price drop from an opening price of $166.45 down, to a point at $108.
The way the market has reacted to Binances announcement is not seen in the price movement but in various technical indicators that are signaling caution, for XMR investors.
Indicators like the Relative Strength Index (RSI) and the Stochastic show momentum while the Commodity Channel Index (CCI) and other momentum indicators suggest an increasing selling pressure. All these indicators together point towards an outlook as all monitored moving averages, from the 10 day to the 200 day are currently in territories.
Considering this consensus among indicators and observing the trading volume accompanying the price drop without any clear historical support levels it indicates that a recovery path for monero could be complex. Investors and traders are advised to stay alert as current market conditions may result in declines or a period of stabilization.
Binances policy of reviewing and potentially delisting assets that do not meet their standards aims to protect their users and maintain a high quality trading environment. This recent decision highlights how regulatory sensitive the cryptocurrency market is, where changes can have profound effects, on market valuations.
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