Binance recently announced that it would remove several cryptocurrencies from its platform, including Monero (XMR). As Binance is the world’s largest exchange by volume, its delisting process almost always damages the token’s value, which was also true for XMR. Shortly after the announcement, the price of XMR began to fall.
XMR Price Drop!
According to 21milyon.com, the price of the token dropped by 27% in just the last 24 hours. At the time of writing, XMR is trading at $120.40 with a market value of over $2.2 billion. The trading volume also increased by over 500%, which could mean that more investors are selling the token. The delisting news spread quickly and made XMR one of the hottest topics of discussion in the cryptocurrency space. This was clearly visible from the significant increase in social volume. The price drop triggered a bearish trend around the token, causing a sharp decline in overall sentiment on February 6th.
Developments on the derivatives front could also be seen as concerning for XMR. For instance, open interest increased while the value of the token decreased. An increase in this metric usually indicates a high probability of the ongoing trend continuing. The Binance funding rate also turned negative, suggesting that derivative traders might be selling XMR as well. This could be due to futures traders fearing further price drops in the coming days. According to experts’ analyses, XMR has a strong support zone near $98.7.
Current Data on XMR
Conversely, the token could face resistance around $122. If XMR manages to turn this resistance into new support, things could improve. To better understand which direction the token is heading, the daily chart was checked. Our analysis revealed that the token’s Money Flow Index (MFI) recorded a sharp decline at the time of writing. Its MACD also showed a significant bearish trend in the market, which could indicate that its price might fall further. However, the Relative Strength Index (RSI) rebounded from the oversold region and moved towards a neutral level. This could suggest that the price decline trend of XMR might soon come to an end.
