In a recent turn of events, Monero (XMR) rebounds with a 23% gain. It experienced a rollercoaster in its market value after Binance announced plans for its delisting on February 6. Despite an initial plunge, XMR has shown signs of recovery, prompting market observers to speculate on its future trajectory.
Monero (XMR) faced a significant setback, experiencing a sharp 25% decline in its value after leading cryptocurrency exchange Binance declared its decision to delist XMR trading pairs on February 20. This move adds to the challenges privacy-focused cryptocurrencies face, which have been receiving increased scrutiny from regulators.
In response to Binance’s announcement, Monero witnessed a substantial drop of up to 30%, marking a swift descent from its highs of $166 to lows of $125 within a short timeframe. The sudden decline was reflected in a massive red candlestick on the daily chart, underscoring the impact of Binance’s decision on XMR’s market performance.
Monero’s struggle with major exchanges is not new, as a similar fate befell the privacy coin when OKX delisted its trading pairs, including other privacy-focused coins like Zcash and Dash, back in January. As of the latest update, Monero XMR has experienced a 25.33% drop in the last 24 hours, settling at $124.
Market Response to Delisting Announcement
XMR, which had been holding steady above $160, witnessed a sharp decline to $100 following Binance’s announcement. This sudden drop resulted in a 37% loss within a 12-hour timeframe, causing concern among investors.
Partial Recovery Amid Uncertainty
Despite the setback, Monero has exhibited signs of resilience. As of 900 p.m. UTC on February 7, XMR has partially recovered, currently priced at $130. This represents a 20% gain within 24 hours or a 27% rise from its lowest point the previous day.
Liquidation Data Highlights Market Activity
CoinGlass liquidation data reveals that XMR saw $2.91 million in liquidations over 24 hours, constituting approximately 3.1% of the crypto market’s $92.4 million in liquidations during that timeframe. Notably, Bitcoin (BTC) and Ethereum (ETH) dominated the overall liquidation figures.
Binance’s Delisting Strategy and Timeline
While Binance has announced its intention to delist XMR on February 20, the immediate impact on XMR prices remains uncertain. The delisting will conclude XMR trading, but Binance plans to allow XMR withdrawals until May 20 and conversions to stablecoins until May 21. This extended timeline raises questions about the potential gradual and less noticeable impact on XMR prices in the coming months.
Ongoing Evaluation and Potential Relisting
Binance’s statement indicates that it periodically reviews each digital asset based on various factors. This leaves room for speculation regarding the possibility of XMR being relisted if it aligns with the platform’s standards. The uncertainty surrounding the permanency of the delisting adds an extra layer of complexity to XMR’s market dynamics.
Industry Trends in Delisting Monero
Binance is not the only exchange to part ways with Monero; other major platforms like Kraken, Huobi, and OKX have also delisted XMR or other privacy coins in recent years. This trend suggests a broader industry reevaluation of privacy-focused cryptocurrencies.
As Monero rebounds with a 23% gain, it navigates through market turbulence triggered by Binance’s impending delisting, investors are closely monitoring its performance. The partial recovery after the initial dip underscores the resilience of XMR. However, with the uncertainty surrounding Binance’s decision and the possibility of an extended outflow of XMR from the exchange, the cryptocurrency’s journey in the coming months remains uncertain. Traders and enthusiasts alike are advised to stay vigilant and adapt to the evolving landscape of the cryptocurrency market.
Also Read: SEC Delays Decision on Spot Ether ETF once again.
