Binance, the leading cryptocurrency exchange by trading volume, has declared the removal of Monero (XMR) along with other cryptocurrencies from its trading platform. The action of excising these cryptocurrencies generally leads to a depreciation in their market value, which has been the case for Monero. The price of XMR witnessed a downturn following Binance’s announcement.
Market Reacts to Delisting
Market data indicates that Monero’s price spiraled downward by 27% within 24 hours. Currently, XMR trades at $120.40, with a market cap exceeding $2.2 billion. The asset’s trading volume surged by more than 500%, likely a result of holders liquidating their positions. The delisting news proliferated rapidly, placing XMR amid the most discussed subjects in the digital currency community, evidenced by the spike in social volume and the bearish atmosphere it generated as of February 6th.
Derivative Markets Signal Caution
In the derivatives market, worrisome signs emerge for Monero. The open interest saw an uptick, all while XMR’s value was dipping. This pattern often foretells a continuation of the current downtrend. A negative turn in the Binance funding rate also implies that derivative traders could be offloading XMR, possibly bracing for further declines. Despite the downturn, experts discern a robust support level near $98.7 for the token.
That said, Monero faces headwinds at a $122 resistance point. Overcoming this boundary could herald positive developments for XMR. Technical indicators, including the Money Flow Index and the MACD, show a prevailing bearish trend, hinting at a possible continued decrease in XMR’s price. However, the RSI points to a potential slowdown in the decline, as it recovers from the oversold condition and edges towards neutral territory.