Binance is taking Monero off its platform. This is causing the price of XMR to drop sharply. The privacy coin dropped more than 30% a few hours after Binance announced. Looking at the chart, its value has fallen to the lowest point in five months.
MXR went from $166 to $125 quickly after the announcement, leading to a big red candlestick on the daily chart. Besides the coin’s value loss, Binance has also attracted some negative sentiments.
The delisting has made many industry observers see it as a “sign of the slow demise of Binance.”
Binance’s Decision to Officially Delist Monero from Platform
On Tuesday, the largest crypto exchange announced that it will delist Monero (XMR) trading pairs on February 20 at 3:00 am UTC. Binance said this decision came from its latest review. Notably, the exchange periodically reviews assets to ensure they meet high standards.
After its review, the exchange decided to delist the following pairs: XMR/BNB, XMR/BTC, XMR/ETH, and XMR/USDT. According to Binance, the reasons for delisting include unethical conduct, poor communication, and not contributing to a healthy crypto ecosystem.
Binance added that the stability and safety of the network from attacks is another reason for the delisting. Further, the exchange also outlined the timeline for the XMR delisting. According to Binance, XMR deposits will lose its support on February 21 at 3:00 am UTC.
Further, XMR withdrawals will cease on February 20 at 3:00 am UTC. Meanwhile, delisted XMR may be converted to stablecoins for users after February 20 at 3:00 am UTC.
This major exchange delisting has dealt a massive blow to Monero, causing its value to drop over 30% below $140.
Some believe Binance is delisting it due to regulatory pressure concerning privacy coins. But Binance didn’t say why they removed XMR. It only stated that it no longer meets their listing standards.
Binance said it would stop trading privacy coins in countries like France and Italy in May 2023 but then changed its mind in June 2023.
Note that other exchanges besides Binance have removed Monero. In late 2023, OKX announced it would stop trading Monero and Zcash on January 5, 2024. Some online commentators say Binance might also suffer from the delisting as well.
Monero dropped strongly on the delisting news from Binance.
While bad for Monero, I mainly see this delisting as a sign of the slow demise of Binance. They are now “so compliant” that they cannot choose anymore which assets to support.
— John Brown (@john_j_brown) February 6, 2024
“While bad for Monero, I mainly see this delisting as a sign of the slow demise of Binance,” prominent crypto trader John Brown said in an X post on February 6.
XMR Shows Signs of Recovery After Bearish Sentiment
Despite the solid bearish pressure in forming a long red candle, the coin seems to be recovering. According to Tradingview data, XMR is sitting above $122 when writing (05:04 Eastern Time).
The chart above shows that Monero’s XMR is trading below the lower Bollinger Band. This shows the coin is oversold after the recent crash. Usually, when a coin falls below the bands, it signals a downtrend and negative sentiment.
XMR is likely due for a bounce after becoming extremely oversold. The RSI reading 32 shows sellers have pushed the price to unsustainable lows. Once selling pressure eases, XMR should see some upside as buyers return.
However, the area between the Bollinger Bands must be reclaimed for the trend to turn bullish again. Until then, an additional downside is possible for the oversold privacy coin.