Monero Seeks Bullish Reversal After 5% Gain Despite Regulatory Pressure
Date: 2024-10-04 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
At the time of writing, Monero is trading at $146.63, with a market cap of $2.7 billion. This has brought some relief to investors after a volatile start to October. XMR opened at $153.80 in the first days of the month, but soon fell sharply to $142.96 on October 2, and then to a nadir of $136.43 the following day.
The drop coincided with the news that major crypto exchange Kraken announced that it was delisting Monero in the European Economic Area to comply with local regulations, ahead of the Markets in Cryptoassets Act (MiCA) expected to come into effect in December.
Kraken's decision adds to the pressure on the market
Kraken's decision has raised concerns among investors, especially due to the attention of regulators on privacy cryptocurrencies. Monero, with its technology for hiding transaction data, has long attracted the attention of regulators, and the upcoming implementation of MiCA has added to this pressure.
Additional concerns were raised by the timing of Monero's price drop: there are suggestions that the asset began to fall even before the official delisting announcement. This has led to speculation that some investors may have taken advantage of insider information. This was especially noticeable against the backdrop of the overall cryptocurrency market growth, when Monero went in the opposite direction.
Monero supporters remain optimistic
Despite the regulatory complications, many supporters of privacy coins remain optimistic. One of them, known under the pseudonym "Klaus", said: "It does not matter whether Monero holds its current price or falls below a dollar, large players will still use this technology to store their capital."
However, at the moment, the token has not fully recovered from the October lows, and trading volume remains low. Over the past 24 hours, trading volume has declined by 24.5% to around $67.8 million, indicating weakening interest from traders.
Technical Levels and Outlook
From a technical perspective, Monero has managed to hold on to the $134 support level that has been relevant since July. This allowed the price to bounce back and rise above the lower Bollinger Band. The next significant target is $163, located on the middle line of these bands. To confirm a bullish reversal, Monero needs to break this level with strong momentum.
Above $163, important psychological resistance is expected at $180, which has already proven to be an obstacle twice in June and September. A break of these levels will open the way for further growth.
Technical indicators show cautious optimism: the MACD indicator remains in the bearish zone, but the MACD and signal lines are approaching each other, which may indicate an imminent trend change. The histogram is still in the red zone, indicating that selling pressure is easing and the bulls may soon take control of the situation.
