- Bearish sentiment around XMR skyrocketed after Binance delisted the token.
- Most metrics and market indicators looked bearish on the token.
Binance [BNB] recently announced that it would delist a few cryptos from its platform, including Monero [XMR].
Since Binance is the world’s largest exchange, a delisting almost always hurts a token’s value, and that remained true for XMR as well.
#Binance will delist the following tokens on February 20, 2024.
Full details here ⬇️https://t.co/3YRKqYrb7T
— Binance (@binance) February 6, 2024
Monero is bleeding
Soon after the announcement was made, XMR’s price started to decline. In fact, the token’s price dropped by 27% in the last 24 hours alone, according to CoinMarketCap.
At the time of writing, XMR was trading at $120.40 with a market capitalization of over $2.2 billion. Its trading volume also shot up by over 500%, meaning that more investors were selling the token.
The delisting news spread like fire, making XMR one of the hot topics of discussion in the crypto space. This was evident from the massive spike in its social volume.
The price drop stirred up bearish sentiment around the token, causing its Weighted Sentiment to plummet sharply on the 6th of February.
Source: Santiment
Things on the derivatives front also looked concerning for XMR. For example, while the token’s value dropped, its Open Interest shot up.
A hike in this metric usually suggests that the possibility of the ongoing trend continuing is high.
Its Binance Funding Rate also turned red, meaning that derivatives investors were also selling XMR. The reason behind this could be Futures investors’ fear of a further price drop in the following days.
Source: Santiment
What to expect from Monero?
AMBCrypto also took a look at Hyblock Capital’s data to find what XMR’s liquidation levels suggested. As per our analysis, XMR has a strong support zone near the $98.7 mark.
A plummet under that could be disastrous.
On the contrary, the token faces resistance near $122. If XMR manages to flip that resistance into a new support, things might get better.
Source: Hyblock Capital
To better understand which way the token was headed, AMBCrypto checked its daily chart. Our analysis revealed that the token’s Money Flow Index (MFI) registered a sharp downtick at press time.
Its MACD also displayed a massive bearish upper hand in the market, indicating that its price might sink further.
Nonetheless, the Relative Strength Index (RSI) bounced back from the oversold zone and was headed towards the neutral mark. This suggested that XMR’s price downtrend might as well come to an end soon.
Source: TradingView
Realistic or not, here’s XMR market cap in BTC’s terms
One spot of good news was that the Binance delisting episode did not have an impact on the blockchain’s mining sector.
Notably, AMBCrypto’s look at Coinwarz’ chart revealed that Monero’s hashrate graph remained pretty stable last week. At press time, XMR’s hashrate stood at 2.29 GH/s.