Monero (XMR) experienced a steep price decrease after Kraken, a US-based crypto exchange, decided to stop offering Monero services. This decision specifically affects users in the European Economic Area (EEA).

Over the past day, the price of Monero (XMR) declined by 6.55%, going down from $153 to $143.50. This price movement follows the delisting of many digital currencies from several exchanges. Regulators are tightening their scrutiny on privacy-oriented digital currencies.

For the EEA clients, Monero trading and deposits are to be suspended at Kraken by October 31, 2024. The clients in the region will be prohibited from transacting in or depositing Monero through any of the XMR markets.

These include XMR/USD, XMR/EUR, XMR/BTC, and XMR/USDT which will all be decommissioned by the said date. The announcement has put more pressure on the price of Monero, which has also been affected due to regulatory crackdowns.

Monero Price Decline Triggered by News of Delisting

The price of Monero declined by 6.55% due to Kraken exchange halting the services for the token consequent to EEA regulation shifts. The new AML rules in the European Union mainly under the MiCA legislation have put cryptocurrencies like Monero in a compromising situation.

Such a sharp price drop is also attributable to increased selling pressure where many traders are selling their commodities. Even with the higher volume of trading during this period the price continues to decline. This move shows that the market is bearish

Technical Indicators Show Continued Bearish Momentum

Technical analysis shows that Monero has maintained bearish signals in the short term to accompany its current price change. The Relative Strength Index (RSI), which tracks the rate of change of price movements in stock, is set at 32.13.

XRM trading chart: Source TradingView

This puts Monero just a little below the oversold level, meaning that the price may continue to slide lower unless there is a reversal of the current trend and people start buying. Readings below 30 normally indicate extremely oversold territory and currently the market is nearly there but not quite.

Also, the Moving Average Convergence Divergence (MACD) is showing a bearish trend for Monero. The MACD line remains below its signal line where both are in the negative territory suggesting weak buying pressure. The histogram is also a bit negative thus supporting the bearish impression.

Monero’s price is nearly in oversold territory, but it lacks upward movement. There is very little buying pressure to counter the selling pressure. This suggests that the regulatory news is having a significant psychological impact on traders, with most opting to sell rather than hold.

Kraken Withdrawal Deadlines and Regulatory Impact

Kraken has clearly stated the timeline for delisting Monero which will help understand the plan of action. Trading and deposits will be shut down by October 31, 2024. However, customers will still be able to withdraw their XMR holdings until December 31, 2024.

After this short period, any remaining Monero in accounts will be converted to BTC at the market price. Kraken informed clients they will receive the equivalent BTC in their accounts by January 6, 2025.

This decision to delist Monero has been occasioned by the fact that privacy coins are experiencing rigorous regulatory pushback across the world. New EU rules on anti-money laundering have complicated the process of supporting privacy coins.

This legislation forbids the use of tokens like Monero, which offer enhanced anonymity. This sentiment is echoed in other parts of the world, where many large exchanges have chosen to remove Monero from their platforms.

They are doing this to comply with regulatory requirements. On 10 June 2024, Kraken stopped the provision of Monero in Belgium and Ireland traceable to regulatory impacts.

Now that these rules have been extended across the EEA, Kraken is taking a larger approach by eradicating Monero from its markets in the region entirely. Similar to Kraken, other centralized exchanges including Binance and OKX are also under growing pressure to de-list privacy coins.

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