XMR rallies over 5% despite regulatory challenges and exchange delistings

XMR is showing early signs of recovery, rising 5.8% in the last 24 hours, sparking renewed optimism among advocates of the privacy-focused cryptocurrency.

At press time, Monero (XMR) was trading at $154.14, marking a 12.56% recovery from its monthly low. This increase was accompanied by a significant increase in daily trading volume, up 33% to more than $65 million, according to CoinGecko.

Despite the increase, Monero remains 71.5% below its all-time high of $542.33 set in January 2015.

However, overall market sentiment around Monero remains bullish, with over 83% of 2,067 votes on CoinMarketCap predicting further bullish momentum.

The privacy-focused cryptocurrency, which started October at $153.8, experienced a sharp decline on October 2, falling to $142.96 and reaching its lowest level of $136.43 the next day. This drop coincided with Kraken announcing that it would delist Monero in the European Economic Area to comply with local regulations ahead of the Crypto Asset Markets Act, which is expected to come into effect in December.

Monero’s delisting on Kraken follows a broader trend among major exchanges such as Binance and OKX to stop supporting privacy coins due to increased regulatory scrutiny.

Despite these challenges, Monero advocates remain determined. Privacy coin supporters argue that Monero’s core use case (enabling anonymous transactions) ensures its continued validity regardless of delistings.

Klaus, a leading Monero advocate, argues that the cryptocurrency’s untraceability distinguishes it from other projects and makes it a target of government crackdowns. He suggests that even if the price of Monero drops sharply, whales and big investors will continue to use it for its privacy features.

Klaus also emphasizes that Monero will continue to be used due to non-KYC platforms that will continue to provide access despite regulatory hurdles. While he cautioned against viewing Monero as an optimal investment at this stage, he argued that its role as a tool for anonymous transactions remains critical.

Monero’s rally comes as the broader crypto market begins to recover from a recent pullback. After a day in which the global crypto market value decreased by 3% to $2.27 trillion and total liquidations exceeded $220 million, Bitcoin (BTC) increased by 0.8% in the last 24 hours, while altcoins such as Ethereum (ETH) and Solana (SOL) are in the leading position. It is located. and Dogecoin (DOGE) posted modest gains of just over 1%. At the time of writing, the overall market value was down 1.3%.

Price action on the 1D XMR/USDT chart is showing early signs of a potential double bottom formation, although it has not yet been fully confirmed. A break above the resistance zone near $160-165 accompanied by strong volume will confirm the pattern and signal a potential uptrend.

XMR price, Bollinger Bands and RSI chart | Source: crypto.news

Currently, the price of XMR is approaching resistance in the middle Bollinger Band around $157.65, and the lower band at $134.08 has formed a strong support zone. The Relative Strength Index stands at 47.12, reflecting neutral momentum, but the recovery from recent oversold conditions below 35 suggests there is room for continued upside.